Factory appetite for sheep is holding strong, with plants happy to operate at current throughput levels. This has remained practically unchanged in recent weeks and was recorded again last week at 62,342 head, a reduction of 59 on the previous week.

There were slight changes in the kill profile, with ewe and ram throughput falling from 10,444 head to 9,336, with an increase in lambs making up this shortfall.

There was some upward movement in prices at the higher end of the market at the end of last week and early this week.

This left regular sellers handling higher numbers and producer groups securing returns of €5.30/kg, while at the top of the market there were isolated reports of €5.35/kg to €5.40/kg paid.

Regular sellers handling higher numbers are generally trading in the region of €5.15/kg to €5.25/kg

Quotes for Thursday are unchanged from last week at a range of €4.90/kg to €5.10/kg, leaving a wider differential between prices quoted and paid.

There are very few sheep moving below a price of €5.05/kg to €5.10/kg including non-quality assured (QA) lambs.

Regular sellers handling higher numbers are generally trading in the region of €5.15/kg to €5.25/kg, while producers trading large numbers or selling through groups are securing returns of €5.25/kg to €5.35/kg.

Factories cite concerns over a move to greater coronavirus restrictions in key export markets. They are seeing some pressure on price, but comment that there was a similar situation in spring when the first lockdown was introduced, with the market balancing itself out after a week to 10 days.

They are hopeful of a similar situation again, but say that this cautiousness is the reason behind quotes remaining unchanged.

IFA sheep chair Sean Dennehy is advising farmers to weigh up all the outlets available to them and to sell hard

There is significant variation in payment to 22kg carcase weight. Many producers groups and sellers with greater negotiating power are now being paid to 22kg carcase weight, but sellers with lower bargaining power are facing challenges in pushing weight limits above 21.5kg.

IFA sheep chair Sean Dennehy is advising farmers to weigh up all the outlets available to them and to sell hard to ensure they are receiving the maximum possible price for their sheep.

He said that weather is likely to leave lambs tighter and this is resulting in agents paying as high as €5.30/kg to €5.40/kg to secure significant numbers.

Northern trade

The trade has also strengthened marginally in Northern Ireland plants.

Starting quotes have increased 5p/kg to £4.40/kg or the equivalent of €4.87/kg at Wednesday afternoon’s exchange rate of 90.3p.

Plants are reluctant to pay higher, but are being forced to increase prices paid by 5p/kg to 10p/kg to ward off interest from agents purchasing sheep for export to southern plants.

The number of sheep exported south for direct slaughter in the last week was unchanged at 8,046 head.