Finished lamb prices are running at their highest level in July for more than five years. Factory base quotes range from €5.30/kg to €5.40/kg, while prices paid to producers with greater negotiating power and those trading through producer groups range from €5.60/kg to €5.70/kg. This represents an increase of 40c/kg to 60c/kg on the corresponding period in 2019 or €8 to €10 higher returns on a 20kg carcase.

The trade is being helped by tight supplies and solid demand in domestic and export markets. Factory agents are using mart sales to try to bolster numbers and are willing to drop down on weights to secure lambs.

They are meeting strong opposition from store lamb buyers armed with ample grass supplies. Lowland store lambs weighing 35kg to 38kg are selling anywhere from €80 to €95 with lighter lots weighing 32kg upwards selling from €72 to €80 on average. Crossbred lambs are running €3 to €6 above last year’s returns.

The outlook for the month is looking more positive each day the Islamic festival of Eid al-Adha draws nearer. The festival which takes place from the evening of Thursday 30 July to Monday 3 August has underpinned the largest weekly kills in recent years.

Live exporters are also becoming active in recent days in sourcing suitable sheep and this is likely to help to keep a good floor under the trade.

The positive trade is inserting much more confidence into the sector as breeding sales commence.

Tullow Mart’s first breeding sale of 2020 included one of the largest entries for its first sale. Manager Eric Driver said farmers anticipated a strong trade and were keen to show sheep earlier. An entry of 350 hoggets ranged from €175 to €185 for lighter types and as high as €195 to €210 for quality lots.