After weeks of significant downward pressure, there appears to be signs of a bit more life in sheep markets.

Kildare Chilling is back offering an official quote of €6.20/kg plus its 10c/kg quality assurance (QA) bonus to 21kg carcase weight.

This is being welcomed by producer groups working on a payment mechanism of average quotes plus a bonus payment.

Depending on the arrangement in place, quotes for many groups have increased by 10c/kg to 15c/kg as a result.

Regular sellers handling bigger numbers are also having more success in negotiating 10c/kg to 15c/kg higher prices, leaving lambs trading at the higher end of the market at a range of €6.30/kg to €6.40/kg, with more reported on occasion.

It is clear that agents are also looking for fleshed lambs given the prices being paid in some mart sales.

Base quotes in other plants range from €6.00/kg to €6.05/kg, leaving individual producers with lower negotiating power typically moving lambs in these plants at €6.20/kg. There are persistent issues being reported with underweight and under-fleshed lambs.

Kildare Chilling is quoting a price of €5.20/kg for lambs killing at a carcase weight of less than 16kg, with other plants introducing price deductions ranging anywhere from 30c/kg to €1/kg for lambs killing under-fleshed or less than 16kg or 17kg carcase weight.

On the opposite side of the weight range, the two ICM plants moved to 21.5kg carcase weight at the end of August. Reports indicate some sellers are securing up to 22kg carcase weight, with many wholesalers trying to encourage farmers to feed lambs.

However, in cases, this is being offered in lieu of the higher price quotes, so producers need to weigh up the most favourable deal, with reports indicating there are few lambs utilising extra carcase weight allowances.

Tight supplies

IFA sheep chair Kevin Comiskey said supplies of suitable finished lamb are tight on the ground.

“Factories are starting to chase lambs and prices rising to €6.40/kg to €6.50/kg have been secured through groups or for larger batches, with deals also negotiated to 22kg carcase weight,” he said.

Kildare Chilling has also increased its ewe quote by 10c/kg to €3.20/kg plus its 10c/kg QA bonus.

A high percentage of sellers are securing returns of €3.30/kg to €3.40/kg for ewes, with prices at the top end of the market reported anywhere from €3.40/kg to €3.60/kg, while the mart trade remains the best option for fleshed heavy carcase ewes.

Northern trade

Quotes in Northern Ireland have firmed by 5p/kg, with prices up by 10p/kg in cases. This leaves lambs trading from £5/kg to £5.05/kg (€5.76/kg to €5.81/kg at 86.8p to the euro), with more in cases.

Last week’s kill fell by over 1,300 head to 10,507, while the number of lambs coming south for direct slaughter reduced by 1,177 head to 6,891, reflecting tighter supplies.