The knock-on effect of the stalemate that developed in the last 10 days between finishers handling large numbers and factories reluctant to move on price is reflected in a significant reduction in the weekly kill.

Last week’s throughput was recorded at 43,659 head, a reduction of 8,420 on the previous week.

Within this, ewe and ram throughput reduced by about 1,000 head to 5,638.

The reduction cannot be totally attributed to this standoff on price, with a tightening in supplies in some areas and an easing in factory demand, which in some instances is linked to a COVID-19-related restriction on the level of processing activity.

Factories retained this price stance for the start of the week, with regular sellers and producer groups trading in the region of €6.20/kg to €6.30/kg, with deals in cases also covering transport costs.

However, reports were starting to emerge on Wednesday afternoon of factories giving way to secure sales of higher numbers and increasing top prices paid to €6.35/kg to €6.40/kg. Again, some finishers handling large numbers are securing an allowance on transport costs or negotiating for full costs to be covered.

Occasional sellers handling small numbers were typically trading within a price range of €5.90/kg to €6.10/kg at the start of the week. Reports suggest those with higher numbers are now having more success in pushing for a 5c/kg to 10c/kg increase in price.

IFA sheep chair Sean Dennehy is advising farmers to take note of the increase in demand and to ensure they are getting the best price possible.

The trade in Northern Ireland and Britain has also strengthened. Quotes from northern plants have increased by 10p/kg to £5.30/kg or the equivalent of €6.03/kg. It is worth noting northern prices do not include the VAT rate top-up that Irish producers receive. Producers with large numbers are securing 10p/kg to 15p/kg higher.

Supplies in the market have also tightened, reflected in the kill falling 2,224 head to 6,378, although it should be noted this has also been influenced by COVID-19-related disruption to processing.

The number of sheep exported from Northern Ireland for direct slaughter in southern plants fell last week by about 1,000 head to 5,531.

The British trade continues to record a recovery in price, with the standard quality quotation (SQQ) for old-season lamb increasing by 11p/kg week on week. This leaves the price at £2.69/kg for Tuesday or the equivalent of just over €3.00/kg.

Deadweight prices have also moved on to in the region of £5.80/kg (€6.60/kg) or higher.

Meanwhile, the ewe trade is variable in factories, with prices ranging in general from €2.85/kg to €3.00/kg for small lots or in deals involving occasional traders, while at the higher end of the market prices are rising to €3.10/kg to €3.20/kg.