Scanned in lamb ewe prices bump upwards as mutton market makes gains

AuctionsPlus saw price increases for joined ewes last week with station mated Merino ewes up $44 to average $136/head with 77 per cent clearance, while scanned in lamb Merino ewes rose $19 to average $123/head with 53pc clearance for the category.

In this week's national sheep sale among the SIL category saw a line of 270 scanned in lamb ewes lambs from Wellington, NSW fetch the top price of $226/head.

Dubbo-based Peter Milling and Company livestock agent John Hyland said while pricing depended on factors including quality and age, there had been lifts in pricing for scanned in lamb ewes.

"They've been pretty dull but they've certainly improved a little bit with the season," he said.

"That's probably been prevalent over the last few weeks... the lamb and mutton market has improved a little and also the season around the Central West is going pretty well.

"In the last two weeks there's been some pretty good contracts out for mutton so it's a little bit more encouraging for people to sell a few old ones and get good rates.

"If they've picked up $20 or $30 on their old ones... they're a little bit more inclined to spend a bit more on the young to middle-aged ones coming in.

"Longer term, I think people can see the lamb market has found a little bit more of a stable rate that's more acceptable than the prices late last year."

Mr Hyland said there had also been significant interest in feeder weight lambs to get a quick turnaround on a grazing crop.

"A trade mob of scanned in lamb ewes is a longer trade, it's probably at least a seven or eight month trade as opposed to a three month cash flow turnaround on a crop," he said.

"Those 35-40kg almost done lambs, in my opinion, they've nearly outpriced themselves and are getting too dear to have much margin left in it."

Nutrien South East region livestock lead Adam Mountjoy said there had been a significant uplift in pricing during June in the south.

"We've seen our general pricing increase by somewhere around $15 a head and that's been off the back of demand for heavy weight stock," he said.

"Heavyweight lambs are certainly making attractive returns right now and we also have seen a lift in the mutton market, which has been a welcome return.

"The thing we're seeing now with a lot of sheep being sold now, is they're being sold with a pelt on.

"The heavy end lambs are now making well north of $7 per kg and mutton averages have lifted to over $100 at the saleyards, which is pleasing, keeping in mind there's a bit of wool on their backs helping the returns."