LAMB prices fell sharply this week as the market reacted to seasonal concerns.
National Livestock Reporting Service reporter Rob Huntington quoted Bendigo's market on Monday down $5-$12 or 10 per cent on last week.
The market wasn't helped by an exceptionally large yarding of 27,000 lambs, more than 8500 up on last week, as producers opted to turn off light sucker lambs before they lost their bloom or freshness.
While the NLRS Eastern States Trade Lamb indicator was 529c/kg at the end of last week, Bendigo's trade lambs, 18-22kg carcass weight, were sold for less than 500c/kg.
But the sharp rise in the Bendigo yarding of suckers has created opportunities for Ballarat and Gippsland restockers. Ballarat agencies TB White and Landmark were paying up to $115 for suckers with an estimated 20kg carcass weight.
Landmark's Xavier Shanahan said Ballarat was having a good season and the lambs he bought would be finished to sell by January.
But while producers prefer to sell finished sucker lambs, if the season turns dry, selling them might be the best option according to NLRS statistics. While the best place to earn premiums for suckers over old lambs is traditionally at the light end of the market, statistics gathered by the NLRS over the past two years show the difference fades when it comes to lambs over 20kg, with no real premiums for heavier suckers.
Meat and Livestock Australia chief economist Tim McRae said premiums simply came down to competition.
"When you look at who can and will buy the lighter suckers, you have processors but also restockers, feedlotters and finishers," he said.
"As young lambs get heavier, you are ruling out some of this competition as restockers become less interested."
Mr McRae said the better seasons over the past couple of years had also affected premiums for older suckers.
Rodwells Bendigo's Mick Crapper said restockers were boosting up the price of lightweight suckers and that is why they earned the best premium.
"We had Ballarat agents here today at Bendigo (on Monday) and they pushed up the price of suckers beyond what the processors can pay," he said.
"So sucker premiums at the moment are for light lines, those which can go out in the paddock."
Light old lambs weren't getting that premium.
In a smaller yarding at Ballarat yesterday, rates were also cheaper, down $15, with reports of suckers being passed in.
