Trade Talk by Andrew Armstrong

22nd July 2016

In Darlington Market over the past few weeks since the UK or do I say England voted in the EU referendum in favour of leaving the EU, the Liveweight lamb price have continued to rise despite higher throughputs continuing as the pound has continued to weaken...

At our weekly Prime Sale on Thursday the 7th of July, we saw an SQQ sale average of 208p/kg and an entry of over 2700. This left prices approx 50p higher than the same week in 2015, as prime lamb price falls were seen at this point last year. This rise comes despite there being higher numbers coming to market in the past week. Prices at this time of year normally fall as increased numbers of lambs come to the market. However, this year, it seems that the current weakness of the pound following the outcome of the EU referendum has supported prices.

The prime cattle trade within our Mart has seen an increase in value as numbers forward for sale through the early part of July are in line with the national trend. The current supply headage reduction does give the producer more control in terms of price dictation. The feedback from Wholesalers and butchers regarding the last month in terms of sales are that retail demand is faring a little better on the back of days of sunshine and movements in exchange rate giving a raised demand for UK beef through the euro zone.

Store Cattle sales through our Monday store ring have seen much demand from our faithful local farmer buyers. The numbers have been impressive presented for sale through July and look to be strong over the remainder of the month and into August...before the larger backend cattle sales commence. The current values of store cattle continue to draw more forward week by week.

Not looking to wish the summer away but this coming Monday the 25th of July will see the first Breeding Sheep sale in our busy backend calendar. Approx 1500 Shearlings and store lambs will be presented. I believe confidence in terms of values, will be seen at these early breeding sales the early prime lamb value have been acceptable giving the lamb producer deep and possibly full pockets.

Andrew Armstrong
Operations Director / Auctioneer
Darlington Market