This week’s sheep trade is getting off to a slow start due to a day less processing.

Factories were more cautious in their purchasing behaviour at the end of last week, due primarily to concerns over a return of lockdown restrictions across Ireland and in key EU export markets.

This led to quotes being maintained at a similar level, with top prices paid curtailed in cases and reduced by 5c/kg to 10c/kg. The base quote on offer continues to vary widely, with most export-orientated plants quoting a base of €4.90/kg to €4.95/kg. The exception to this is Kildare Chilling, which continues to quote a base of €5.10/kg plus its 10c/kg quality assurance bonus.

Floor under trade

This is setting a good floor under the trade, with sellers handling smaller numbers and possessing lower negotiating power generally moving lambs in the region of €5.15/kg to €5.20/Kg. Regular sellers handling significant numbers are securing 5c/kg higher, while those trading in producer groups or on their own merit at the end of the market are securing €5.30/kg and in occasional cases €5.35/kg. The latter price is harder to secure, however, in recent days.

Producers should be aware that while factories may be more cautious in their purchasing behaviour they are still keen to operate at a high level of throughput. There are also continued signs of the number of well-fleshed lambs tightening and this is also helping to keep a floor under the trade.