Exchange manager Paul Christopher said overall stock numbers were down in the 2016-17 financial year.

“Quite a few people kept stock back in the past year,” he said.

“It’s been a good lambing season though so numbers are predicted to jump back up later this year.

“But our July numbers were the lowest in about 10 years.”

Mr Christopher said there were many farmers that didn’t run sheep anymore.

“There’s been a declining trend in the past six or seven years,” he said.

“A lot of lambs also didn’t go out last year because they were expensive to buy, so that’s had a bit to do with it too.”

Mr Christopher said high lamb prices in the past year also meant many farmers were selling stock directly to others, instead of coming through the saleyard.

“It’s a marketing option that is available for farmers,” he said.

The low numbers also meant high lamb prices in 2016-17.

“Prices have been really good,” Mr Christopher said.

“They have backed off a bit in the past six weeks but they are still quite good.

“We had a sale on Wednesday and lambs were selling at about 600 cents a kilogram,” he said.

Mr Christopher said he expected the market to remain stable over the next few months.

“The prediction is that it will go sideways and won’t dip too much,” he said.

“New seasonal lambs have been about 580 cents a kilogram and people are paying about $10 for a skin, so hopefully that will stay the same.

“It could fluctuate though if it stays dry in some areas but wet in the Wimmera – there are so many variables.”

Mr Christopher said a stable market was easier to work with.

“When people want to buy lambs, if they can buy them at 580 cents a kilogram, and know they can put on a few kilograms and still sell them at 580 cents a kilogram, it makes it easier to do budgets.”

A Meat and Livestock Australia report said many producers were intent on retaining ewes in 2016-17, which contributed to high lamb and wool prices and saw national mutton prices boom.