Lamb price forecast with Simon Quilty

Lamb and mutton markets are on the rise as good rains across Australia give hope to sheep producers that growing conditions will improve in the coming months.

So much of the lamb and mutton industry's price issues have come from oversupply and the lack of slaughter capacity, as well as poor markets.

With continued liquidation of the breeding flock the lamb kill is expected to fall over the next six quarters, which points to higher prices. Lamb has an inverse relationship to supply - as supply falls, prices are expected to move higher.

Australia's mutton kill reflects the female kill as most wethers are sold as lambs, so when the mutton kill moves above 2 million head, this reflects liquidation of the breeding flock. With liquidation comes less joining and fewer lambs.