Processors have cut lamb prices this week by 30p to 40p/kg, or £6 to £8 per head, with quotes falling to 630p/kg.
Farmers offloading lambs report deals of 640p/kg are on offer, but negotiating prices above this level has become extremely difficult as supplies coming on the market increase.
Buying competition from the marts has also eased by £10/head on the back of reduced competition between buying agents for factories either side of the Irish border.
In the Republic of Ireland, lamb prices have eased by 50c to 70c/kg with a top of €7.80/kg on offer, which converts to a sterling equivalent of 635p/kg. Prices have also fallen in Britain, with 660p/kg paid for slaughter-fit animals.
Farmers will hope the price cuts will be short-lived as processors are expected to ramp up buying activity in the runup to the Eid Al-Adha festival on 9 July.
The beef trade remains steady, with base quotes holding at 432p/kg for U-3 grades. However, prime cattle are still selling around the 450p/kg mark, with cull cows making 410p/kg for suckler-bred types.
Some processors continue to talk the trade down but with supplies set to remain tight this summer, opportunities to do that are limited.
At current costs, farmers need a breakeven price of 460p/kg to finish cattle off grass this year.