The sheep trade eased this week in response to the on-going increase in supplies over the past few weeks. An overhang in hogget supplies is still evident. This combined with demand on the key export markets remaining somewhat subdued has not helped trade.
Quotes for old season lambs by the end of the week were generally making from between €4.00-4.35/kg. Demand for mutton has also subsided with quotes for cull ewes typically making between €2.25 - €2.50/kg. Quotes for new season lamb have also eased with prices now typically making from €5.30-5.40/kg by the end of the week.
Weekly sheep supplies for the week ending the 12th May were virtually identical to the previous week and 4,700 head higher than the corresponding week last year at 40,200 head. Hogget supplies continue to seasonally weaken, with supplies now approximately under one third of total weekly supplies.
In the UK, trade for both old season and new season lamb continued to weaken on the back of lower demand from the French market .Trade is being hampered by the on-going effects of a strong pound against the euro, this is impacting on the competitiveness of UK lamb on export markets. By the weekend, old season lamb and new season lambs at live markets across Great Britain were making the equivalent of €4.73/kg and €5.84/kg respectively.
In France, demand remains weak on the back of on-going poor weather conditions combined with weak consumer sentiment. In addition, in line with increased domestic supplies from the key European producers, extra product is emerging on the market which is affecting trade. These developments have led to prices for limited numbers of Irish grade 1 Spring lamb reportedly making from €5.60-5.80/kg by the end of the week.
Ex Rungis Lamb Prices (covered lamb) 14th May, 2012 (€/kg)
Grade U, French 7.40, Imported 5.80: R, French 6.60, Imported 5.60; O, French 6.50, Imported 5.40