Good demand for high quality lamb

Following on from our report on the Tamar Valley lamb sale last week, the following day I ventured down the high way to Oatlands where Nutrien and Elders yarded 5,980 lambs and 1,740 aged sheep. 

Like the day before the quality was very good although a bit more of a tail than the Tamar Valley sale (reflecting the differing seasons) but the market was again very strong with local and Victorian restockers competing with processors throughout the sale. 

The heaviest lambs made $190 to $202, medium weights $103 to $164 and small $52 to $132/head. 

Shorn lambs created a premium with more woolly lambs than is normal for this sale. 

Almost all aged sheep were bought by processors with heavy sheep making $101 to $140, medium $74 to $95 and light $42 to $58/head. 

Although I only saw the countryside driving down the Midland Highway, the season through the Midlands looks in good shape and although dry (it is mid January) there is plenty of feed about and there was certainly a positive vibe through the farmers (and spectators) that I spoke to. 

Interstate prime lamb prices have eased a bit since before Christmas remembering these were very high. 

Most lambs are being quoted between 800c to 850c while secondary trade types more in the 750c to 800c/kg carcass weight with reports that most processors have plenty of lambs in front of them. 

There does seem to be a thought that although overall numbers will be big for a month or two the number of very well finished lambs over 26 kg won’t be plentiful and so these prices will probably hold up pretty well. 

It might be an interesting next month or two in the lamb job probably driven by seasonal conditions. 

Mutton markets continue to sail along at very good rates although a few dollars cheaper than pre-Christmas. 

There are a lot of sheep selling for over 400c/kg with only the very heavy and very light less than that mark. 

At Powranna on Tuesday the best sheep worked out either side of 400c/kg although extra heavy (over 30kg) were less. 

Extra heavy made $110 to $134, heavy $108 to $124, medium $66 to $92 and light $40 to $92/head. 

More sheep over $100 than we have seen for a very long time. Victorian weaner sales continued on into the Western Districts with the big sales at Hamilton and Casterton this week. 

As was to be expected (because of the extra freight costs compared with Wodonga) the prices were a little bit cheaper than last week’s sales at Wodonga and other central Victorian sales. 

A big percentage of these cattle are being bought to end up in Central and Northern NSW and Southern Queensland and so the there is an extra freight burden trucking out of Western Victoria. 

There are still plenty of steer weaners making around the 400c mark and heifers 350c to 380c/kg liveweight. 

Although these prices are better than last year, there is a feeling that cow and calf operators are barley making a profit compared with other alternatives. 

I did read an article recently suggesting that weaner calf averages need to be around $1300 to really be profitable. 

It is a long time since I was selling weaner cattle and so I am not sure what the cost of production would be but there is no doubt that over the last couple of years it would have been touch and go. 

The first of the Tasmanian weaner sales is on February 27th and run though into April.