Market Morsel: Skinny margins on the lamb trade

Market Morsel

In the last week national light and restocker lamb prices have shed 50 cents on a carcass weight basis to sit nearer to 650c/kg cwt. The very favourable Bureau of Meteorology rainfall forecast may have sheep producers contemplating picking up some light/restocker lambs.

A look at a simple lamb trading matrix shows that margins are slim pickings on a 30kg lwt entry for a 50kg sale weight. Unless you can lock in a 625-650 c/kg cwt sale price.