Condition is proving key to attract the top prices for finished lambs at auction marts.
The GB liveweight SQQ for new-season lambs was down by 1.97p/kg on the week to average 229.79p/kg in the week ending Tuesday 18 October.
Prime lamb throughputs at UK auction markets were up by 2% (2,240 head) to total 110,282 head.
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Traditionally, finished lamb prices begin to pick up in the run-up to Christmas as demand increases and supply tightens.
Martin Clack, auctioneer at Bridgnorth Livestock Market, said lean or underfinished lambs are proving hard work, with customers willing to bid up for finished sheep but avoiding the plainer lambs regardless of their price.
“Lambs under 40kg are attracting considerable interest with plenty of customers looking to buy lighter lambs. Plain lambs traded around 200p/kg, with lean 40kg-plus lambs the hardest to sell,” he said.
Finished lambs averaged 229.67p/kg (£99.64 a head) at Welshpool on Monday 10 October.
Jonathan Evans, auctioneer at Welshpool Livestock Sales, said the heavier lambs of 50kg and above have had a bit of a knock, but there was a bit more demand for the 43-48kg lambs.
“Export-weight lambs are a bit steadier at the moment and it’s been the same for past six weeks,” he said.
Sedgemoor Auction Centre reported a strong and competitive trade for the best lambs, but sales continued to be difficult for lean, lighter types.
Deadweight
Deadweight lamb prices picked up in the week ending 15 October following two weeks of declines.
The GB deadweight SQQ increased by 4.3p/kg to total 524.1p/kg for the week ending 15 October.
Prices are currently 4p below the same week last year.
Despite some recovery for sterling against the euro to stand at £1:€1.14 on 20 October, it remains relatively weak, which should help to support export trade.
Margins for store lambs
The gap between store and finished lambs has widened as the costs of feeding and finishing stock on farm stays high.
GB Store lambs averaged £67/head for the week ending 15 October, down £3/head on the previous week.
A 40kg finished lamb based on the current SQQ is worth £91.90 a head, which is a £25 a head premium to stores.
In the same week last year, a 40kg finished lamb was worth £93.40 a head, and stores at the time averaged £76 a head, which left a gap of just £17.40 a head.
Hannah Clarke, AHDB senior analyst, said: “Store lamb auction prices typically soften around now before picking up towards the end of the year, reflecting trends in the finished market and numbers of store lambs coming forwards.”
Falling retail demand
The volume of lamb sold at retail totalled 16,000t for the 12 weeks ending 2 October, which was a 20% drop on the same period in 2021.
Total spend dropped by 12.5% on the year to total £156m for the 12-week period.
