Lamb prices are predicted to be beneath last year's levels on the back of softer demand from the United States.
This is according to industry analysts, who said although stability appears to have returned to the lamb market, prices will not reach the heights seen in 2021.
The national trade lamb indicator was at 733c/kg on September 30, 21pc below the same time last year.
Rabobank's senior analyst for animal protein Angus Gidley-Baird said the US has seen a slow down in lamb marketings and an increase in lambs held on feed.
"Year-to-date production in the US is down nine per cent," Mr Gidley-Baird said.
"The slowdown in lamb is also leading to an increase in cold storage inventories.
"In July, lamb and mutton stocks were up 23pc compared to last year.
"Increased volumes and slower demand are expected to see US wholesale prices decline."
But MLA's senior market information analyst Ripley Atkinson said saleyard price performance in each state towards the end of the year will be dependent a number of factors.
These include processor capacity to deal with larger volume of lambs than the previous two years and the number of lambs consigned to forward or direct contracts from the paddock.
"It will also depend on the finished quality of lambs, with higher quality and weight supporting stronger prices," Mr Atkinson said.
Currently, NSW has the most expensive lambs in the country, despite a recent 33pc increase in supply.
Last week the state's average price was pushed higher by $3 week-on-week to $189 per head.
This was on the back of robust processor activity driving intense demand.
It's also the highest weekly price for new season lambs since mid-July, when just 336 head were yarded in the state, and comes as 41,245 head were yarded last week.
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Mr Atkinson said the current NSW new season lamb price is operating 7pc or $12 higher than the three-year average of $177 per head.
"Compared to the corresponding week in 2021, both price and supply are softer, reiterating the late arrival of new season supply in 2022," he said.
In Vic last week a sharp uptick in new season supply saw prices soften marginally, with processor demand causing prices to stabilise compared with NSW.
The state's new season lambs averaged $184 - 12pc or $19 higher than the three-year average of $162/head.
Mr Atkinson said Vic's new season lamb price performance for the remainder of 2022 will be influenced by the volumes of lambs contracted out of the paddock and delivered from interstate.
A tightening supply has seen prices continue to rise in SA to $184/head - their highest level since the first week of December 2021.
Currently, SA prices are operating 19pc or $29/head above the three-year average.
"Compared with the corresponding week in 2021, prices are firm while supply is softer by 58pc or 8,300 head," Mr Atkinson said.
"Dry conditions in 2021 saw new season lambs delivered early to market last year.
"Favourable conditions promoting higher lambing percentages in 2022 and the larger lamb cohort expected will determine - and may place pressure on - significant price increases moving towards the end of 2022."
In WA, prices for new season lambs softened by 10pc to average $87/head.
Mr Atkinson said as WA processors continue to work through large volumes of lambs from the 2022 cohort, supply continues to place downward pressure on prices.
He said due to larger volumes and the aforementioned factors, price performance nationally may remain constrained.
"Looking ahead, new season supply is expected to arrive later than previous years and the current robust demand from processors for quality lambs is driving buyer competition and price," he said.
Mr Gidley-Baird said export returns are expected to receive a boost from a weaker Australian dollar.
On top of this, albeit volumes to key markets have been flat or lower, volumes to other smaller markets including Papua New Guinea and Canada, were trending upwards.
