DWINDLING supplies and a three-way battle between restockers, processors and live exporters has pushed prices for Merino wethers to record levels.

At Corindhap, west of Geelong, last week - in what was believed to be a Victorian auction record - Mt Mercer restocker John Freeman paid $110.50 for 596 for 2 1/2-year-old Merino wethers.

The Wurrook-bloodline wethers, bred and sold by Jim Boyle, were carrying a six-month or $20 of wool.

The $110.50 was paid less than hour after Carranballac restocker Tony Liston paid $110 for 395 1 1/2-year-old wethers at Bruce and Paul Walton's reduction sale.

"Never ever received a price like that," said Bruce Walton.

"It makes you glad you stuck with sheep," Mr Boyle said.

The Boyle and Walton sales were part of the Lismore-Western Plains circuit sale which also saw live exporter Samex pay $98 for 403 3 1/2-year-old November shorn wethers estimated at 65kg.

Samex buyer Russell Blain said the wethers would be part of a shipment to leave Portland on Friday.

It was a big bonus for vendor Nigel Long of Rokewood who had knocked back an offer of $85, delivered to Portland, for the wethers prior to Christmas.

Mutton processors were also active at the circuit sale, but found the older ewes more to their liking, paying to a top of $89 for a run of Tim Bingley's 4 1/2-year-old Merino ewes.

Last week's hectic market for Merinos followed a Victorian record of $213 paid the previous day at Ballarat for 1 1/2-year-old Border Leicester-Merino ewes bred and sold by Colin Smith of Carranballac.

Justification for a lift in the sheep prices also coincided with a sharp rise in the wool market which saw the AWEX Eastern Market Indicator end the week at 926c/kg, up 47c/kg on the pre-Christmas market close.

The supply squeeze on all classes of sheep was also reflected at Monday's Bendigo market where lamb and mutton prices continued to edge up.

Young lambs - 12-24kg carcass - averaged $98 or 454c/kg and heavy fat Merino wethers sold to $110.

The National Livestock Reporting Service's Erich Strein said the prices were amazing.