Core Viewpoint - The average price of lamb in China's wholesale markets has shown a slight increase, indicating a potential upward trend in lamb prices and profitability for sheep farming in the upcoming autumn season [1][2]. Price Trends - As of June 25, the average price of lamb was 59.67 yuan/kg, up from 59.19 yuan/kg on April 25, marking an increase of 0.48 yuan/kg [1]. - The year-on-year decline in lamb prices has significantly narrowed, from 9.45% in the first week to 3.01% by the 24th week of the year [1]. Supply and Demand Dynamics - The decline in lamb prices since 2021 was primarily due to oversupply; however, recent adjustments in production capacity have led to a stabilization of prices and profitability [2]. - By the end of 2024, the number of sheep in China is expected to decrease by 6.8%, contributing to a reduction in lamb production [2]. Production and Profitability - The average profit for sheep farmers has stabilized at around 35 yuan per lamb, indicating a recovery in the profitability of sheep farming [1]. - The total lamb production in 2024 is projected to be 5.18 million tons, a decrease of 2.5% year-on-year [2]. Future Outlook - The demand for lamb is expected to grow as consumer preferences shift, suggesting a potential for a new cycle of growth in the lamb market [3]. - The number of breeding ewes is at a low level, which may impact future lamb production and prices positively in the autumn and winter seasons [3].