I try to hold my prices as stable as possible. The problem I have run into in selling whole lambs to folks is that if I hold my price too long, I have to make a big jump and then I lose some customers. I've done that twice now in the last six years and while I haven't exactly regretted it, there's a certain amount of work to drumming up new customers.
I don't change my prices based on the commodity market, though. I base my pricing on my cost of production. So when lamb prices were over the moon last year, I probably would have been better off shipping my lambs to New Holland than selling direct, but the price was where it needed to be to make me money and I wanted to maintain the customer base. I will not be dropping my prices now and following the market into oblivion.
FWIW, I was at the neighborhood gourmet butcher shop today and their prices are higher than what I charge by the cut at the farmers' market. Loin chops were $22/lb; I get $19.50. I'd say the shop's are a little bit better than mine, but the butcher told me he had to trim quite a bit of "white meat" off them to get them presentable in the case. He'll use the fat in sausage, but since he paid for it at the wholesale rate for a loin, it's expensive fat.
He has not seen any reduction the prices his suppliers charge, interestingly, so perhaps the middle men are trying to recoup some losses. Downward pressure on retail prices is probably still a couple of months off, if it's coming at all.