Meat and Livestock Australia reports that following on from last year, supply shortages, combined with solid demand from all sectors of the market are driving prices.

The national restocker lamb indicator averaged 487¢/kg (carcase weight), the highest since 1998.

Consignments of light lamb sold to strong demand from feeders, restockers and export processors, and after Thursday’s markets settled at 425¢/kg, the highest price since August 2004.

The trade lamb indicator increased 7¢ on last week to settle at 476¢, while heavy lambs finished at 467¢/kg – both records for January.

MLA says the recent improvements have predominantly been driven by lower than normal yardings registered so far in 2010.

Saleyard prices have not been this high since July 2009.

Sheep availability also continues to be tight, as the mutton indicator settled at a new record high of 325¢/kg.