Lamb market thrives as demand up
Lifting demand for WA lambs has launched the State’s price upward by nearly 40 per cent year-on-year, aligning the protein’s value with Eastern States markets.
The WA Trade Lamb Indicator sky-rocketed to 880¢/kg carcase weight last week to mark a 251¢, or 39 per cent, increase on last year’s levels.
Mecardo market analyst Angus Brown said the State’s lamb market was thriving amid dwindling supply and strong demand.
“WA lamb producers have joined the party, with their lambs almost the same price as those on the east,” he said.
“For the East Coast, it was either steady or lower for most sheep and lamb indicators.”
Across the Nullarbor, the Eastern States Trade Lamb Indicator closed at 848¢/kg cwt after it dropped 23¢ week-on-week.
Eastern States’ restocker lamb price also declined 52¢ week-on-week last week to 796¢/kg cwt, while mutton gained 2¢ to average 590¢/kg cwt.
WA’s restocker lamb indicator closed at 680¢/kg cwt.
Mr Brown said although the ESTLI had declined, it could rebound firmly with the forward lamb supply expected to remain tight.
“The price fall is a little reminiscent of the check the market had in August last year, before it went on to set new highs,” he said.
“We know supply is going to get tighter, the question might be whether processors are better off closing for a period, or to keep on killing.”
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