Lamb throughputs dropped as prices fell the previous week allowing liveweight lamb prices to stabilise in the week ending 24 July.

Lambs presented at GB auction marts were down 37% on the week according to EBLEX, likely due to the Royal Welsh Show and while prices have stabilised, they haven’t responded much beyond a general levelling.

Processors are said to be clearing a backlog of lamb from the previous week and are therefore approaching the market with caution which has meant prices just levelled at around the 170-180 p/kg mark.

The average GB SQQ for the week was 174.3p/kg, a drop of almost 33p/kg week on week although by Wednesday July 24, prices were slightly better than Monday having averaged 178.1p/kg. Cooling down of the hot weather will hopefully stimulate demand for lamb coupled with the Muslim festival of Eid not too far in the distant future, meaning many are remaining optimistic that the lamb trade will pick up.

Providing a mass marketing of lambs does not occur in the next few weeks, returns should look fairly good for producers as many farmers look to keep lambs a little longer to add weight hopefully making a better average price per head, counteracting the lower pence per kilo.

Imports also remain as a suppressant to the market with volumes 15% higher on the year, much of this coming from New Zealand (NZ). NZ imports are up 14% on the year and import levels remain the highest recorded since May 2009. These imports are also 17% cheaper on the year, standing at £3,800 per tonne.

It will remain to be seen what sheep markets do in the coming week although many producers remain optimistic.