After a period of sharp upward momentum, the sheep trade seems to have steadied since the end of last week.

Factory agents are still keen to maximise throughput, but they are more cautious in their purchasing behaviour and are digging in on prices offered.

This is leaving a high percentage of deals completed at the higher end of the market ranging from €5.55/kg to €5.65/kg, with agents setting this as the line they are unwilling to cross.

There is more of an appetite to give allowances on carcase weight, with many groups and regular sellers now achieving 22.5kg carcase weight, while select deals are rising to 23kg carcase weight.

Regular sellers

Regular sellers not trading at the higher end of the market are typically trading around the €5.50/kg mark, while individual sellers handling small numbers and trading periodically are receiving prices of €5.40/kg.

The exception to this is in Kildare Chilling, where the base quote of €5.40/kg plus 10c/kg quality assurance (QA) bonus leaves all producers with QA lamb trading from €5.50/kg upwards.

This is providing a number of sale outlet options and allowing producers to weigh up the best route to market

IFA sheep chair Sean Dennehy continues to advise producers to keep lambs moving as they become fit for slaughter.

He says the trade for all slaughter-fit lambs is solid and benefiting from factories, butchers and wholesalers starting to source sheep for Christmas orders.

This is providing a number of sale outlet options and allowing producers to weigh up the best route to market, he says.

Ewe trade

The ewe trade is also edging upwards. Opening quotes are generally in the region of €2.60/kg to €2.70/kg.

Returns of €2.80/kg are being secured by regular sellers, while, at the top of the market, there are reports of €2.85/kg to €2.90/kg being paid for large batches and some of these producers holding out for higher prices before moving ewes.

Supplies are relatively tight in mart sales and this is adding to competition in the trade. Producers with heavy lowland ewes should note the carcase weight being paid on, as this ranges from 40kg to 45kg.

Northern trade

A vibrant mart trade is helping to keep plenty of life in the trade in Northern Ireland. Prices have also stabilised in recent days, with regular sellers negotiating prices ranging anywhere from £4.55/kg to £4.70/kg and reports of slightly higher in cases.

At Monday evening’s slightly weaker exchange rate of 88.9p to the euro, this equates to €5.06/kg to €5.29/kg.

Northern prices do not include the 5.4% VAT top-up that southern producers receive.