| Lamb and Mutton face downward trend |
|
Eastern states trade lamb over the hook (OTH) rates have recently started a
downward trend declining (14¢, to 357¢/kg cwt), much like prices at physical
markets covered by MLA’s NLRS. However, OTH rates have been less erratic and
variable than rates at physical markets. OTH trade lamb rates though have not
declined to the same extent or as quickly as physical market rates. Processors
are now holding off when setting their OTH rates and competition is reduced due
to an abundance of new season lambs. The physical market, which is becoming
cheaper, is expected to dictate the OTH for the meantime.
Further declines in rates are apparent for heavy lambs across the eastern states in both OTH and physical markets reported by MLA’s NLRS. Greater numbers of heavy new season lambs on the market and dry conditions forcing larger numbers to become availability have been the source of these declines. The national mutton indicator at the completion of Thursday markets was 152c, which is a 13c loss from last week. The quality of mutton across the eastern states has been fair to good and mutton rates have been holding firm at physical markets, while direct to processor across the eastern states have become cheaper. |
