Once again, lamb prices are on a downward trajectory, with multiple saleyards reporting lower levels.
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This decline, coupled with price adjustments seen in March, has pushed the saleyard indicator for trade weight lambs below 640 cents a kilogram carcase weight.
Sheep prices have followed suit, experiencing a parallel decline.
In recent days, certain classes of mutton have even been quoted below 200c/kg.
The primary issue driving this trend seems to be an imbalance between supply and processing capacity.
Reports indicate that many processors are grappling with a backlog of lambs and sheep awaiting slaughter, overwhelming their current kill capacity.
Consequently, some buyers have found themselves well stocked for the upcoming weeks, leading to a noticeable absence of certain companies at saleyards, as they refrain from purchasing additional stock.
Another factor affecting lamb prices was starkly evident at the Bendigo lamb sale, as reported by Meat & Livestock Australia's National Livestock Reporting Service.
A demand-related challenge emerged during the sale, attributed to disruptions in air freight to the Middle East due to the ongoing conflict between Iran and Israel.
Specifically, lightweight lambs weighing under 18 kilograms, typically bound for the Middle East, saw discounts ranging from $20-$40 a head.
Notably, major orders for these specific types of lambs resulted in no purchases at the sale.
Heavy lambs, including those destined for exports to the US and grain assisted weighing more than 30kg, sold for $186-$236, averaging between 640-650c/kg.
During the mutton sale, it became evident that buyers were reluctant to spend beyond the $100 mark, regardless of the weight of the sheep.
The heaviest crossbred ewes fetched prices ranging between $75-$95, with an isolated sale of big Merino ewes in full wool reaching up to $110.
Generally, prices averaged around 260-270c/kg.
Similar trends persisted at Corowa, NSW, where buyers reduced rates by $10-$15 for trade lambs.
However, well-presented lambs fetched prices ranging from $138-$168, with buyers showing notable interest in lambs with shorter skins and good shape.
Heavy lambs maintained their value at the top end, particularly those supported by grain assistance, which remained in high demand.
The majority of heavy lambs sold from $162-$236, averaging 640c/kg.
At Ballarat, yarding numbers dropped to 32,436 lambs and 15,321 sheep, 7421 fewer.
Quality remained mixed and prices came off the boil across the board $8-$15, with lambs averaging from 610-650c/kg.
