The National Sheep Association (NSA) has said there should be a better outlook for the lamb industry, as trade saw significant strengthening in the early weeks of 2016.
During the week to January 28, the liveweight GB SQQ was up 1p/kg to 177.8p/kg, its highest point since June 2015.
AHDB pointed to better retail demand meeting tighter supplies, as well as a weakening of the pound against the euro.
NSA chief executive Phil Stocker said: “There is a bit of optimism we have come out of the trough and things are fairly stable. Exports are ongoing and steady and the dynamic is just a bit better.”
Mr Stocker added information from AHDB about sales before Christmas was also encouraging for trade.
He admitted there may be some producers struggling for cash, with many farmers still waiting on Basic Payments, but denied this was greatly affecting trade.