RECORD-breaking spring lamb contracts and unprecedented rising prices at saleyards are delivering strong returns for producers, as supply tightens across Victoria and southern New South Wales.
Elders Swan Hill-based livestock specialist Matt Rowlands says week-on-week sheep prices continue to improve, with limited yardings and reduced quality contributing to a highly competitive market.
“We’re seeing limited numbers yarded across the saleyards in Victoria and into New South Wales; there’s continued decline of supply there,” Mr Rowlands says.
“Quality is starting to become an issue also, so you’re not seeing the well finished grain fed lambs presenting in as much supply as what they have been.
“There’s really good, solid competition on them even with a couple of processors that are absent at the moment due to being shut down for maintenance at this time of year.”
Mr Rowlands was in Bendigo last week where heavy lambs were reaching $11 dollars per kilo with trade lambs fetching up to $13 dollars per kilo.
“So very, very strong sales there and that’s still with probably three to four processors missing from the normal buyers,” he said.
Record prices are also being seen for spring lamb contracts according to the Elders livestock specialist.
“Lamb contracts our for August, September, October are as high as $11 per kilo,” Mr Rowlands said.
“There are some really good opportunities to book plans forward going into the spring.
“They’re record numbers that we’ve seen come out on contracts, so really good opportunities for producers.”
Sucker lambs with access to irrigation are also putting on good weight around the region.
“We’ve had enough frost and bits and pieces that the feed that’s there is quite hard, so they’re doing really well,” Mr Rowlands said.
“So it’ll just be a matter of seeing what the water market does in our area on top of what the rain’s going to do.
“We’re expecting to start to get a bit of rain towards the end of winter and into spring which will be quite important.
“There’ll be good opportunities to purchase new season lambs in the coming four to six weeks.”
Mr Rowlands said Merino wether lambs also present a strong opportunity to either purchase and put on feed, or background over stubbles to then go onto feed through springtime.
“If we look forward at what sort of opportunities are beyond that, we’ve probably got to think about all the ewes across Victoria and South Australia that have been killed and gone to the processors,” he said.
“Those lambs are well and truly out of the system, so you’re going to see a bit of a double shortfall in my eyes, and you’ll see that play into the market as we get closer to summertime.”
Meanwhile, the cattle market is also showing strength, driven by tightening supply and strong demand from feedlots and processors for weight.
“Last week at Swan Hill we saw that heavy finish cattle job jump by 20 to 30 cents per kilo, and the cow job was at least 30 to 40 centre a kilo better on the heavier end,” Mr Rowlands said.
Store cattle prices are rising in line with the general rate across southern and eastern Australia, though Mr Rowlands said there is still value for producers with short-term targets.
“There’s still opportunity to buy store cattle for prices which their heavier counterparts are making more massive places,” he said.
“Still a good opportunity to buy those cattle for shorter term turnarounds.”
Mr Rowlands said talking to ram breeders, there are good supplies of both terminal and merino rams coming into the spring selling seasons.
Elders is proud to support the Treweek Family for their 25th annual on-property ram sale, held on the family’s Induro White Suffolk and Ultrawhite stud.
Held on October 10 in Wakool, Mr Rowlands said this is not a sale to be missed with over 200 rams from industry leaders on offer.
“The Treweek family’s offering of rams is outstanding again this year and the quality of the stud’s stock can balance and improve every sheep enterprise when matched with the correct sires,” he said.
“The high lamb prices we are seeing now will come back at some point in the future to lower levels, and if you have the top genetics then you’ll put yourself in a position to achieve great results.
“The Induro White Suffolk stud is the exact place to buy from; if you’re pushing for leading carcass traits or phenotype to present your stock there will be rams available at this sale that are in the top five, 10 and 20 per cent of the best in the country.”
