The timely bump in prices meant prime lamb, mutton and Merino lamb indicators lifted after several weekly declines. The lift saw the National Mutton Indicator hit 592c/kg cwt this week.

Tight saleyard supply has continued to place upward pressure on prices in recent weeks, with a milder than average spring and continual rainfall supporting producers' attitudes to add weight and hold lambs for longer.

Favourable production fundamentals, coupled with the buoyant heavy lamb price, is ensuring producers are dictating terms for market supply.

The National Heavy Lamb Indicator is operating at a 91c or 11 per cent premium to the same time in 2020. For producers, large bodies of feed have ensured they've been able to hold onto lambs, adding weight to produce a better margin at the point of sale.

With a significant weather system moving across the eastern states at the back end of the week, any rainfall will be an incentive for producers to retain their lambs as long as the mild temperatures continue.

There will be a point where the weight of lambs cannot be driven any higher and supply will be provided to the market. Although with current production and market fundamentals supporting the producer, saleyard supply continues to remain tight in seasonal terms, MLA reported.

Trade and heavy lamb categories achieved 846c/kg carcase weight (cwt) and 850c/kg cwt, respectively.