Lamb OTH prices ease

Lamb over-the-hook prices dropped this week and mutton over-the-hook prices remained stable. Victoria has been showing the strongest prices, while WA is catching up to the eastern states.

Here, Prices & Markets looks at the latest over-the-hook (OTH) prices and how they compare on a state-by-state basis.

Lamb OTH prices

All states saw decreases in the medium weight trade lamb OTH this week. Supply also restricted, with national lamb slaughter down 11% week-on-week and 9% on the same time last year.

The Victorian medium trade weight lamb OTH indicator was back 10¢ to 662¢ - the strongest state price - while SA eased 7¢ to 660¢/kg carcase weight (cwt). NSW saw a more significant decline, down 37¢ to 657¢ and WA eased 10¢ to 650¢/kg. So far in 2019, the price deficit of WA compared to the eastern states has become much less pronounced.

At the end of 2018 the closest state in terms of OTH price was SA, although medium trade weight lambs were still making a 64¢/kg cwt premium to their western neighbours.

Heavy lamb OTH prices have remained slightly stronger than the trade weights. The national heavy lamb OTH indicator is holding a 5¢ premium at 662¢/kg, with Victoria again the highest of all states at 675¢/kg cwt. This is still nearly 30¢/kg cwt above the saleyard heavy lamb indicator.

Light lamb are selling significantly cheaper OTH than the heavier offerings, with the national light lamb indicator currently at 625¢/kg cwt.

Mutton OTH prices

The national medium mutton indicator was at 390¢ this week, down 2¢/kg cwt on last week. After opening 2019 at 409¢, it’s seen very little movement, less than 5¢/kg cwt since 21 January.

NSW and SA mutton OTH prices are currently trading at 385¢ and 393¢/kg cwt respectively. Victoria is again trading at a slight premium at 400¢/kg cwt.

Interestingly, these prices are nearly identical to year-ago levels despite year-to-date national sheep slaughter being up 20% on 2018. NSW prices are exactly the same, while Victoria, 3¢, and SA, 10¢/kg cwt, have seen slight rises year-on-year.

Want market reports and prices tailored to you?

Check out MLA’s interactive market information tool.