Sheep and lamb market alert
4/03/2009
OTH rates lift across eastern states
Over the hook (OTH) rates across the eastern states have increased as contributors try to secure adequate supply of good quality lambs. The lift in OTH rates is also mirrored in the dearer trend experienced at physical markets over the past couple of weeks.
Most lightweight trade lambs are of poorer quality and are showing the affects of the extreme climatic conditions experienced over the past month. The small numbers of better quality lambs are usually supplementary fed heavy trade and heavy lambs.
OTH rates in SA for trade and heavy lambs lifted 10ยข, averaging 420ยข and 410ยข/kg cwt respectively. Trade and heavy lambs topped at 450ยข/kg cwt in NSW.. OTH rates in Victoria were around 5ยข/kg cwt dearer for both trade and heavy lambs.
Due to mixed quality sheep available and tightening supply, OTH rates are firm to dearer. Heavyweight sheep in Victoria were 5ยข dearer to average 170ยข, while in NSW they averaged 203ยข/kg cwt. SA mutton rates were firm.
Supply drops, indicators lift
Across the eastern states, supply has fallen 23% for lambs and 14% for sheep at physical markets reported by MLA’s NLRS. This has been influenced by the variable weather and the cheaper prices last week. Consequently, indicators have risen from last week.
Restocking lambs gained 7ยข from last week to settle at 391ยข, while Merino lamb was 4ยข higher at 337ยข/kg cwt. Light lamb experienced the largest gain of 18ยข to finish at 378ยข/kg cwt. Trade lamb was 2ยข higher to settle at 417ยข, and heavy lamb lifted 10ยข to 435ยข/kg cwt. Heavy lambs topped at $149/head for a couple of large pens at Ballarat. Mutton was 6ยข higher to end at 197ยข/kg cwt.