The majority of eastern states sheep and lamb saleyard indicators have steadied since early June, after a period of sharp gains.
A declining supply of finished lambs has seen heavy lamb prices (over 22kg cwt) continue to perform exceptionally well, reaching 907/kg cwt (carcase weight) on Tuesday, up 262¢ year-on-year and unchanged since 1 June. Strong export demand has translated into elevated saleyard prices, with processors competing fiercely in the face of declining supply.
With the expectation for supplies to further contract during winter, the modest easing trend for trade lambs (18.1-22kg cwt) is unlikely to be maintained. Last year, trade lamb prices briefly retreated during August after a sustained rise during June and July, before kicking on to set highs in September. On Tuesday the Eastern States Trade Lamb Indicator (ESTLI) was reported at 866/kg cwt, up 216¢ year-on-year but back 1% since 1 June.
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