Drought delays some southern sheep into September 

Sheep breeding transactions could be delayed into September in southern areas, as drought-affected demand has limited clearance rates and numbers forward at some sales.

A record-breaking summer of heat and drought has complicated the outlook for breeding sheep sales, with some farms paying more on the year.

Early lambers with grass and rain in the forecast have had confidence to buy and a strong bottom has been put in the trade by cull ewe prices. This has resulted in the best sheep being as dear, or dearer, as last year, and was reflected in a largely stand-on trade at Thame. 

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However, selective bidders with little grass, rising costs and tanking prime lamb values – last week’s SQQ was 239.1p/kg – will look to buy sheep at slightly discounted rates.

Cull ewe prices, while strong and supportive of full-mouthed ewe prices, are nationally no longer ahead of last year.

Lower clearance rates

A lot of buyers have so far held off purchasing in the hope of buying sheep later when rain and grass come, according to Tom Mellor of Greenslade Taylor Hunt at Sedgemoor.

“Buying has been a bit more selective this year,” he told Farmers Weekly. “Headline prices have looked strong, but clearance rates, which might normally be 95%, have been down at more like 80% in the South West.”

Mr Mellor hoped that with a little rain now benefiting grassland in the area, demand would be stronger and clearance rates would lift.

“It’s started greening up around here [in Somerset], but we could still do with more rain,” said Mr Mellor. “It has improved confidence a little, though, which was seen in the store lambs last week.”

He said store lambs jumped £9 a head to £75.75 last week (21 August).

Rain will help

Stephen Williams of Williams Associates said sheep were still in remarkably good form overall, given the tough summer.

Speaking after the first sale at Usk Showground, he said best ewes were perhaps only £10-£15 less on the year. However, the largely Texel-cross and Suffolk-cross entry saw 1,215 yearlings level at £159.22, which was £23 back on the year.

“About £170 got you a good, strong-farming Suffolk Mule shearling,” said Mr Williams.

Looking forward to the second sale on 2 September, he said cooler, wetter weather and no further drops in prime lamb interest would help the trade. But he stressed the quality of sheep had been exceptionally good.