A number of factories moved over the weekend to pull quotes back by 10c/kg. Others followed suit as the week progressed to a base of €4.40/kg, with the reduction aided by more lambs in the system due to the bank holiday.

Despite the quotes falling to €4.40/kg for today (Thursday), there are still sellers negotiating a price of €4.60 to €4.65/kg at the higher end of the market. There are also reports of lambs moving at €4.70/kg, but many of these deals were completed earlier in the week or through producer groups, or for choice lots. Most sellers with small numbers are facing a price range of €4.50/kg to €4.60/kg, with the higher quotes for quality assured lamb.

Sellers should note that there is room to negotiate on weight, with most plants now paying to 21.5kg carcase weight. Deals have also been negotiated to 22kg where a small percentage of lambs in a large group have exceeded 21.5kg.

The trade in Northern Ireland has also eased by 10p/kg to £3.50/kg, or the equivalent of €4.63/kg including VAT. With a higher quote and northern plants continuing to process greater volumes, there is less attraction for sellers to target the southern market. Last week’s lamb kill recorded 12,738 head, with the number of lambs exported falling by over 1,300 head to 5,761 sheep. Higher throughput in southern plants meant there was no real difference in the weekly kill of 59,850 compared to 60,119 the previous week.

Processors are pointing to falling UK prices putting pressure on the export trade into France. UK prices have come under increasing pressure in recent weeks, with throughput running 7% to 8% above year earlier levels.

Prices have eased back to the equivalent of €4.70/kg to €4.80/kg.

IFA’s John Lynskey said farmers are resisting factory price pressure on lambs and getting €4.60/kg to €4.70/kg, with top prices of €4.75/kg paid in cases this week. He said deals of €4.65/kg to €4.70/kg to 22kg have been done.

Solid ewe trade

Cull ewe quotes have fallen 10c/kg. Most plants are quoting €2.40/kg, with deals being completed at €2.50/kg to €2.65/kg. With the mart trade presently good for heavy ewes, farmers with small numbers and finding it hard to negotiate a price should consider all avenues of sale. Factory-fit ewes are selling anywhere from €85 to €100 per head for good lowland ewes, with live exporter competition pushing prices for large-framed fleshed ewes to €115 per head.

Breeding sales holding

There is farmer confidence in breeding sales, helped by the strong cull ewe trade. Hoggets have started selling from €150 to €180 per head with the top lots rising to €200 in special sales. Second and third crops are selling from €110 to €130 per head.