In contrast to long-term historical prices, the 2022 saleyard selling year for sheep and lambs is exceeding all expectations.
In a recent report by Meat and Livestock Australia (MLA) data shows prices are well above the 10-year average prices for both sheep and lamb.
MLA market information analyst Ripley Atkinson said the market is in a remarkable position considering the circumstances.
"Producers shouldn't lose sight of how good things really are when something out of the ordinary happens," Mr Atkinson said.
"I know people are worried about the market dropping 20c or $10 per head because there aren't as many processors operating at the yards, but the market is in a good position.
"But when you take a step back and look at the position the industry is in at the minute, in comparison to what we have seen over the last decade, it puts a bit of perspective in to the situation just how good things actually are.
"And it has the season to boot which really just puts the icing on the cake."
According to the data restocker lamb prices are leading the charge with the indicator sitting nearly 50 per cent above the 10-year average.
"The current National Restocker Lamb Indicator (NRLI) is priced 49 per cent or 292c/kg carcase weight (cwt) higher than the 10-year average," Mr Atkinson said
"Clearly, the restocker market for producers selling into this avenue is extremely strong compared to long-term averages."
For the month of January the National Trade Lamb Indicator (NTLI) is sitting 45pc or 258c/kg cwt above the 10-year average price of 580c/kg cwt.
"While this years yardings have remained softer than expected, the average price recorded for the month of January 2022 was 839c/kg cwt," Mr Atkinson said.
And for January 2022, the National Mutton Indicator (NMI) average price was 577c/kg cwt - a figure 59pc or 215c/kg cwt stronger than the 10-year average.
"Although this may sound low compared to the heights of over 700c/kg cwt during 2021, a lot of confidence remains in the market, remember in 2012 the average mutton price was just 140c/kg," Mr Atkinson said.
"So its current price compared to the long-term average provides confidence to industry in the market's short to medium term performance."
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Looking ahead, Mr Atkinson said concerns around prices softening due to an uptick in supply when processing levels return to normal can be put into perspective when using long-term averages.
"When we look at it at that macro level, obviously we haven't seen the throughput we would traditionally see for January," Mr Atkinson said.
"We are expecting in the next couple of months an uptick in supply in the short-term as those lambs that were booked in for January have been pushed back to February or March.
"Obviously that supply and demand situation will play out and that increase in supply may place downward pressure on the market, but prices comparatively to the long-term will remain favourable."
And he said those holding on to trade lambs would then be expected to fall into heavy weight categories.
"The bumper season has managed to support producers and given processors a little bit of room to move.
"Obviously we are not seeing a lot of lambs turned off grain, they are all predominantly grass fed, so it means producers can hold them that little bit longe.
"Obviously that is going to transfer into the yardings we see in regards to weight ranges."
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