SHEEP prices reached a 12-year high on Monday, soaring to almost 400c/kg.
An abundance of feed has spurred buyers into the market to compete with processors and butchers, while live exporters have offered forward contracts in a bid to secure supply.
The Eastern States Indicator for sheep reached 396c/kg, 21c/kg higher than last week and 65 per cent higher than the same time last year.
"To see mutton over 400c/kg in the markets is amazing," National Livestock Reporting Service manager Travis Parsci said.
"The trade lamb indicator was at 506c/kg on Monday and heavy lambs were making 485c/kg."
The indicator for sheep is an average price for all markets reported by the NLRS in Victoria, NSW and South Australia.
Mr Parsci said shorter supply, particularly coming into winter, was the main price driver and he did not expect prices to drop much in coming months.
"Even though the Australian dollar is bouncing around, (processors and exporters) still have orders to fill," he said.
The dollar has fluctuated by more than 4c against the US dollar during the past week to hover around US90c yesterday.
At Bendigo's prime sheep and lamb market on Monday, 3000 sheep were penned, with prices for two and three-score wethers peaking at 475c/kg and the averaging 397c/kg, with an $8-$10 skin.
The Eastern Young Cattle Indicator is tracking at 343c/kg, up 2c/kg on the previous week.
