Australia-This weeks lamb market.

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 10¢, averaging 420¢ and 410¢/kg cwt respectively. Trade and heavy lambs topped at 450¢/kg cwt in NSW.. OTH rates in Victoria were around 5¢/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 5¢ dearer to average 170¢, while in NSW they averaged 203¢/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 7¢ from last week to settle at 391¢, while Merino lamb was 4¢ higher at 337¢/kg cwt. Light lamb experienced the largest gain of 18¢ to finish at 378¢/kg cwt. Trade lamb was 2¢ higher to settle at 417¢, and heavy lamb lifted 10¢ to 435¢/kg cwt. Heavy lambs topped at $149/head for a couple of large pens at Ballarat. Mutton was 6¢ higher to end at 197¢/kg cwt.