Winter hits sheepmeat market

Meat & Livestock Australia senior market information analyst Erin Lukey said yardings had reduced by about 50 per cent across most indicators and it had let to positive price movements.

"It does normally happen around this time of year but it has been very quick," she said.

"Dubbo halved their throughput on Monday which took about 20,000 out of one of the biggest sheep markets and that was because of a lot of rain.

"I think there are a few of these little influences across saleyards such as the rain influencing Dubbo.

"That paired with the winter turnoff is all compiling on one week after the huge supply coming through the last month... it's all just come to a head where producers have turned off what they were willing turn off."

Ms Lukey said up until now there had been sustained turnoff so it had been interesting to see the pullback in supply happen so rapidly.

"The last NLRS slaughter update showed another record week of lamb slaughter and it was the sixth week this year that we've had over half a million slaughtered so there's been huge throughput through saleyards, huge numbers getting slaughtered," she said.

"There's a chance that we've just come to the end of that supply as we normally do in winter."

The reduced supply has seen all national indicators boosted, with trade lamb up 32c in a week to 775c, heavy lamb up 42c to 776c, restocker lamb up 55c to 642c, light lamb up 30c to 618c, Merino lamb up 68c to 592c and mutton up 25c to 362c.

Ms Lukey said it was too early too tell if the yarding numbers would remain down or if there would be an influx of additional supply next week.

"That supply has come back so dramatically that all the green may influence a bit more stock going through the saleyards next week," she said.

"With the price lifts you always see producers a bit more keen to participate so it will be really important to look at what happens next week."

Ms Lukey said there was mixed quality at saleyards at present, with the supply of heavy lambs coming off considerably.

"Quality is getting rewarded... you're seeing your gap between heavy and trade lambs and light and restocker lambs grow as the finished product is more desirable from processors," she said.

"It's really where we are at in the season, prices always peak over winter as supply turns off and then went you get that early weaning starting to come through, that early ewe turnoff that's where supply lifts back again and we can see a dip in those prices."