For the first four weeks of the year, MLA reported lamb and sheep slaughter was 37 per cent higher than in the same period last year.
However, limited availability of good trade lambs in recent sales prompted bidding battles from buyers, pushing the Eastern States Trade Lamb Indicator (ESTLI) higher.
The decline in yarding numbers was due to producers pulling supply as a result of recent cheaper prices.
This resulted in a push for the mutton price in Victoria.
The same can't be said for their northern neighbour, with NSW mutton ending the week around 30 cents lower.
The National Mutton Indicator remained steady at 336c/kilogram cwt over the week.
The ESTLI lifted 11 cents to 760c/g cwt this week, down eight per cent year on year.
In the west, trade lambs ended the week at 658c/kg cwt after a 24 gain week on week.
Heavy Lamb prices softened over the week falling 7c to 813c/kg cwt.
Mercado analysts report that since early December heavy lamb prices had been on an upward trend and predict the ceiling may have been reached this week.
Restocker activity improved in Victoria, with competition forcing higher prices in this sector also.
The National Restocker Lamb indicator gained 13c to 667/kg cwt.
Stronger competition for restocker lambs in Victoria offset weaker price movements in NSW and SA.
However, SA restocker lambs are still at around a 70c price premium to those in their neighbour state to the east, due to tighter supply.
While many were throwing a lamb chop on the barbecue for the Australia Day holiday, there were strong lamb throughput numbers of 293,098 lambs and 106,804 sheep in the east for the week ending the 27th of January.
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With our currency experiencing a rise from US68c to US71c over the month of January, export lambs are more expensive now in USD terms than they were in the second half of 2022.
This is likely to limit much more upside for finished export lambs, unless there is a correction in the exchange rate.
Even in USD terms, mutton is still looking very cheap for overseas buyers.
In Ballarat, MLA Market reporter, Graham Pymer, said there was a big lift in lamb numbers at the Central Victoria Livestock Exchange last sale with 32,881 yarded.
"The quality was mixed over the unshorn lambs with large numbers suiting restockers and processing orders.
"The shorn lambs presented in good condition and sold to $298/head.
"The usual buying group attended and operated keenly in a mostly firm market with plainer types a little easier," Mr Pymer said.
Ballarat saw Southdown cross lambs at times selling to 900c/kg cwt.
Medium and heavy trade weight lambs sold from $186 to $226 and extra heavy weight lambs sold from $260 to $298/head.
Unshorn lambs to the trade mostly sold from $170 to $224/head.
Restockers were active and paid from $100 to $167 and $32 to $87/head for lighter drafts.
Lamb prices saw shorn light weight lambs sold from $77 to $131/head, light trade weight lambs sold from $150 to $186/head and averaged 830c to 850c/kg cwt.
Medium trade weight lambs sold from $180 to $210/head and ranged from 820c to 870c/kg cwt.
Heavy trade weights sold from $208 to $226/head to average around 865c/kg cwt.
Export weights sold from $223 to $248/head to average 850c/kg cwt.
Extra heavy weight lambs sold from $260 to $298/head.
Across the border at the SA Livestock Exchange, quality was again fair to good as agents offered 6,500 lambs and 1,500 sheep.
"Competition was erratic from the outset and while a full field of buyers were active, returns were mixed.
"Light and store lambs sold easier as the best of the heavy weight lambs sold equal to the previous sale.
"A good selection of mutton sold firm for type and condition," MLA Market reporter John Traeger said.
Extremely light lambs sold from $70 to $125 with light lambs ranging from $120 to $140.
Medium weight lambs sold from $130 to $174 as heavy weights ranged from $188 to $200 with extreme heavy weights selling from $226 to $255/head.
Hoggets sold from $92 to $140 with medium weight mutton selling from $58 to $75 and heavy weights $92 to $104/head.
