Sheep and cattle prices keep falling as northern dry spell leads to flooded market

Livestock agent at Wagga Regional Livestock, Adam Boyd said the price of "most categories of lamb and beef" has dropped significantly in recent weeks.

"Lamb prices have dropped 20 per cent and cattle prices could be more like 40 per cent [in the last month]," Mr Boyd said.

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"Cattle prices [at the Wagga saleyards] were significantly cheaper again on Monday and it's hard to see where it will plateau out."

Mr Boyd said apart from a brief correction during COVID, the market has not been this low in years.

He said the proliferation of livestock during the last three wet years and the recent dry forecast by the Bureau of Meteorology were also contributing factors in leading farmers to sell.

"Farmers have been spoiled over the last few years with both the weather and the market and this is a bit of a reality check," he said.

Eunony farmer Bill Schulz runs about 900 head of ewes on his property and said it will hit hard.

Mr Schulz said the price plummet was "extremely disappointing" and that the volatility makes it "very hard to proactively manage finances and strategies."

"We're price takers and quality articles are not being rewarded at the moment," he said.

"Some would say the market was overcooked, and maybe it was, but the downward drop is so extreme but it's hard to fathom how it's come off so far so quickly."

NSW Farmers Wagga district branch chair Alan Brown said the dry conditions in the state's north are seeing farmers try to offload excess cattle, forcing down prices locally.

"Conditions are tough and people aren't buying up store stock," Mr Brown said. "Cattle that were making $5/kilo for live weight a couple of months ago are now making $3/kilo."

Mr Brown said it shows the sensitivity of the Australian market.

"A small drop in demand will produce a big drop in price. That's what's happening at the moment and it's exasperating," he said. "I don't see it changing until we get a significant rain up north. We need rain. That changes everything."

Meanwhile, Glenellen hay farmer Jim Parrett has already seen inquiries for hay slide amid the meat market price drop.

Mr Parrett said when stock prices fall, he struggles to sell quality hay because producers turn to cheaper alternatives.

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