As processors increase their kill rates to meet strong export demand for both heavy and trade lambs, finished stock were 40-46 cents per kilogram carcase weight (cwt) dearer by the end of last week.
And east coast lamb slaughter numbers were at 341,353 head processed with 86,529 head of sheep.
Combined, slaughter rates were nine per cent higher than the same time last year, and slightly above the five-year seasonal average.
An increase in slaughter in South Australia and NSW drove the lift week-on-week.
But Mecardo analyst Olivia Agar said processor numbers are still behind.
"East coast lamb throughput of 185,841 head for the week ending May 27 was an 8pc jump on the week prior, but is still trailing usual throughput expectations for this time of year," Ms Agar said.
"Over the last five years, on average at this point in the season we have seen weekly throughput 5pc higher than last weeks levels.
"And fo sheep, numbers only really started tightening up a few weeks ago, and we are seeing similar numbers come through now as we saw at this time last year."
Heavy lambs strengthened by 44c compared to the week prior, landing 820c/kg cwt, with 92pc of sales going to processors.
This has pushed the heavy lamb price 34c higher than the same time last year.
Yardings have softened by 4000 head, but still remain strong at 48,381 head last week.
"Southern saleyards were fetching premiums on the national average with the three highest prices found in Horsham, Wagga and Forbes," MLA market information analyst Jenny Lim said.
"Recent wet weather has improved buyer sentiment and the quality across the saleyard.
"High competition for trade lambs from domestic processors improved prices week-on-week."
The national average price for trade lambs lifted 38c week-on-week, with Wagga Wagga taking out the top price at 965c/kg cwt.
Ms Lim said a greater presence of buyers from Victoria were competing with the local NSW processor buyers as restocker sales reduced by 9pc from the beginning of May.
"Restocker sentiment seems to have eased nationally as the indicator softened by 57c week-on-week," Ms Lim said.
"Yardings fell below 10,000 head last week as key contributors see a reduced yarding - such as Ballarat, which had a 6000 head drop in yardings last week."
According to Ms Lim, producers are wary of the supply chain issues continuing with processors booked out months in advance.