AHDB Cattle and Sheep Weekly
07 September 2015
Welcome sharp increase in the liveweight lamb trade
Following the increases seen towards the end of last week there have been larger gains in the liveweight lamb trade in the recent days.
In week ended 2 September the GB SQQ was up by 11p on the week at 155.0p/kg. This has reduced the difference compared to last year to just 2p. The sharpest rises were seen towards the end of the week, with the SQQ on Wednesday 2 September up 15p on the week at 159.8p/kg to be 8p above levels seen in 2014.
This is the first time since April that the SQQ has been above last year’s level.
These increases are likely to be a result of a number of factors driving some increase in demand. These include a recent strengthening of the euro against the pound, which will be helping the export situation. The upcoming Muslim festival of Eid-al-Adha (September 23) may also just be starting to have a positive influence on demand for lamb. However, the festival is three weeks away and so its effect on prices is likely to increase in the coming days.
Supplies have also been slightly tighter in the shorter bank holiday week – throughputs at GB auction markets fell by one per cent on the week. The percentage of lambs falling within the SQQ weight band was at 76 per cent.
Despite this rise in the liveweight trade, the deadweight trade has continued to fall, with the dw SQQ in the week ended 29 August down 4p on the week at 331.3p/kg. This leaves prices 43p below levels seen in 2014.
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