Lamb Contracts for winter are showing a $1.30/kg increase, reflecting Market optimism or Processing Flows , or perhaps both. Processors could be looking to lock in supply with this year’s kill estimated at 18.25m, one of the lowest on record.
AgriHQ senior analyst Mel Croad says one processor has released a prime lamb contract for May-June supply offering $7.30-$7.80/kg, and indications are others will follow, the usual seasonal farm gate pricing volatility for lamb is less pronounced this season despite shipping issues, a high exchange rate and the contraction of the food service sector. Could this reflect the more structured and stable pricing in the now dominant retail sector and the performance of exporters in selling product.
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