Prices stable after demand fuels brief surge

THE trade rode the wave of stronger factory demand for the first half of last week, with reports that up to €5.20/ kg was paid in places.

However, by Thursday factory bosses felt confident enough in the numbers coming on stream to turn back the price to €5.00-5.05/ kg.

The factories were playing down those bigger numbers in the overall picture and instead pointed out that ferry traffic to Britain and France was disrupted last week by bad weather.

All of these elements do feed into the overall mix of where the trade is at this week, however, with two major plants choosing yesterday morning not to touch their quote for lamb — market leader Kildare Chilling (€4.90+10c/kg

Q A) and Kepak Athleague (€4.80+5c/kg Q A).

The two ICMs and Dawn Ballyhaunis fell back 5c/kg to €4.75+10c/kg Q A. Moyvalley did not quote yesterday.

On the cull ewe side Dawn pushed up their quote by 10c/ kg to €2.70/kg, while Kildare, Kepak and the two ICMs stayed put on €2.60/kg, with Kildare offering 10c/kg Q A.

Factory prices on the ground for culls are reported to be running at €2.80-2.90/ kg.

Despite uncertainty around how many sheep are in the system and factory complaints of too many heavy fat lambs coming on stream, I get the feeling that factories remain keen to source supplies.

You would be tempted to think that whatever about the numbers game and difficulties in getting over to France last week or getting into Paris this week, the message is that the markets are there and they need servicing in the run-up to Christmas.

On the mart front, trade moved very well last week as those early price moves by the factories worked their way through the system, resulting in increases of up to €4/hd for lamb reported.

Reports from marts such as Kilkenny and Athenry yesterday indicated that while numbers were up on the previous week, in general prices held.

DESPITE SOME UNCERTAINTY, I FEEL FACTORIES REMAIN KEEN TO SOURCE SUPPLIES