Lamb indicators across the eastern seaboard made some major downward adjustments as a surge of lambs entered saleyards last week.
But industry analysts were confident prices would remain steady, even predicting they will level the same strong efforts of mid-to-late 2021, as demand is expected to well and truly outstrip supply.
Last week, however, restocker lambs dropped 47 cents a kilogram carcase weight, or 6 per cent, to finish at 774c/kg cwt.
Heavy lamb prices also fell 18c/kg, or 2pc, to close at 804c/kg cwt, while light lambs performed stronger.
Hamilton was trading 142c/kg below the national average, while Ballarat was trading at a 53c/kg premium compared to the national average at 820c/kg cwt.
Wagga Wagga, NSW, increased its yarding by 8000 head and Ballarat jumped by 10,508 head week-on-week.
According to Mecardo analyst Adrian Ladaniwsky, the sizeable dips in prices were attributed to a significant surge in supply in comparison with demand.
"Eligible lambs contributing to the national trade lamb indicator were up 53pc week-on-week to 19,900 head," Mr Ladaniwsky said.
"Heavy lamb supply increased 40pc to 70,252 head and light lamb volumes surged 81pc to 13,119 head."
He said restocker lamb yardings increased by only 15pc to 11,420 head, but suffered the most savage price fall out of all of the indicators.
Meat & Livestock Australia market information analyst Jenny Lim said the loaded market allowed buyers to take advantage of an easing in prices.
"Last week saw Victorian buyers on the rail, trying to fill numbers from the lower yardings in the state," she said.
"This week, there were only a few buyers from the state and so interest was more subdued."
Ms Lim said export buyers were also quiet as challenges around sourcing shipping containers continued.
"The tail-end of the lambs are now coming through the saleyards and so quality is mixed as many secondary types that are about to cut their teeth are sold off," Ms Lim said.
Mutton prices managed to hold despite a sharp increase in yardings.
The National Mutton Indicator's offering increased 55pc to 16,223 head, finishing at 648c/kg cwt.
Mr Ladaniwsky said part of last week's increase in yardings can be attributed to sales being cancelled due to this week's Queens birthday holiday on Monday.
And he said another repeat of elevated volumes throughout eastern Australian saleyards would likely put more downward pressure on prices.
"If you are selling sheep though, you seem to be in luck as demand appears to be well and truly outstripping supply at the moment, with prices again in the heady regions we saw mid to late 2021," he said.
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