Liveweight lamb prices start to slip as pound strengthens

Midsummer liveweight prime lamb prices have been 50p/kg higher on the year but have begun to falter recently following a slight recovery in sterling.

The British average SQQ hit 200.8p/kg in the week ending 13 July, an increase of 7p/kg on the week and 44p/kg up on the year, prompting higher throughputs at certain markets, which has started to dampen prices, reported AHDB Beef and Lamb.

However, the word from many auctioneers is that levels are still ahead of last year and “far from bad”.

Newark

An “electric” trade reported at Newark in recent weeks has eased somewhat this past week with prices about 20p/kg lower on the week, leaving an SQQ of 196.86p/kg and an overall of average of 196.85p/kg on Saturday (16 July).

Trade has been £23 a head up on the year with throughputs of 2,648 lambs levelling at an SQQ of 212.94p/kg and 2,182 lambs at an SQQ of 206.87p/kg.

What was worth £62 last year has been worth closer to £85 this time round, according to sheep auctioneer James Sealy, Newark Livestock Market.

However, he said a lot of markets are starting to see mixed trade and noted some very heavy drawing of lambs, with a lot more lighter lambs through the ring (32-41kg).

“Trade could have peaked, although its difficult to say,” Mr Sealy told Farmers Weekly.

“The weaker pound after Brexit has helped the export of lambs specifically, but typically we see trade start to dip at this time of year.

“We have seen fairly consistent numbers here at Newark, although we’ve noticed people are drawing lambs hard.

“We’ve heard a lot of scaremongering about leaving Europe but where else can people buy the quantities of lamb that we have? British lamb is some of the best in the world.”

Sedgemoor

Prime lambs have also been a flying trade on the year at Sedgemoor, which reported easier prices this week.

Monday’s sale (18 July) saw 2,165 lambs level with an SQQ of 181p/kg.

This is down on recent sales, which have been running 30-50p/kg up on the year through June and July, said auctioneer Paul Ashton of Sedgemoor Auction Centre.

“The Monday before, lambs averaged 207p/kg,” he told Farmers Weekly.

“Prices were helped that week when the pound absolutely plummeted, but since the pound has strengthened that’s put lamb prices back 20p/kg.”

He recommends farms hold on to lighter lambs, adding that the 45-52kg lambs were 189p/kg and the very heaviest were still over £2/kg and up to £108 a head.

“Buyers at the moment are looking for heavier lambs that have fat cover and weight.

“The thin, lean, light lambs are not hitting good killing-out percentages,” he added.

“Anything under 40kg would be better off on a store market day than a fat market day.”

He said the market could have topped but given the current political situation between Westminster and Brussels it was a tough one to call.

“Last year we were down to the £1.70 mark in June and then the £1.40 mark into July and our SQQ on 20 July for comparison was 145p/kg.”

Melton Mowbray

Tom Greenow of Melton Mowbray livestock market has seen highest prices for lambs hitting the 40-43kg mark and strong prices for the heavier end generally.

He reported a slip in trade on Tuesday (19 July) with 1,540 lambs averaging 190p/kg – a larger yarding than expected.

This followed excellent prices the week before, seeing 1,763 prime lambs level at an SQQ of 208.67p/kg.

“Last week we had 56kg lambs at over £2/kg,” he explained.

“Last week they were 50p/kg dearer on the year.

“However, with great hay-making weather resulting in a slightly lower yarding of lambs we were pleasantly surprised by prices, which were supported by two supermarket buyers.”

Rugby

Prime new season lambs hit an SQQ of 191.7p/kg, with 3,214 through on Monday (18 July).

Of these, over 2,500 were medium (39.1kg-45.5kg), levelling at 191.5p/kg.

AHDB data shows this is a 24.8p/kg drop on trade but there was a larger yarding, admitted auctioneer Tom Wrench.

“Customers met a steadier trade as the exchange rate and European festivities steadied the job,” he reported.

“Trade was consistent and above the national average for the day.”

He stressed that there was “an abundance” of lean and underweight lambs forward, which typically only have a niche market in July.

Notable consignments were from JS and VM Hiorns, selling Texel-cross lambs to 213p/kg and 39kg lambs at £83 a head.

Beltex-cross lambs from Stewart Gowling made 208p/kg at 39kg and Jeff Clarke had 33.5kg Beltex-crosses at 207p/kg and 150 lambs over 200p/kg.