Cattle trade and prices steady at factories
While farmers maintain a steady outflow of livestock to the plants, processors hold the prices at the previous weeks level, with only very high quality beef animals securing a slightly higher price.
Despite the kill remaining higher than most weeks in 2012, processors remain interested in cattle to supply the market demand which is holding strong.
Any surplus to immediate requirements could build a small bank in the cold stores to cushion against inevitable slowing down in supply over the later months of the spring.
Quoted base prices for this week are unchanged at 410-420 cents/kg (146p-150p/lb) for steers.
For most, the going price is 410-415 cents/kg and getting over 420 cents/kg is both difficult and rare.
In general, heifer prices are running at a 15 cents/kg ahead of steer prices.
Prices range 425-435 cents/kg (151p-155p/lb).
A few choice lots are reported to be making up to 440 cents/kg, but that is far from readily available around the country this week.
The unexpectedly high level of cattle supply over the past several weeks has eased pressure on processors to pay higher prices.
It is a very unusual situation that intake continues through February and into March at a level which was rarely reached during 2012.
Last week’s kill at 30,215 head maintained the pattern of the previous weeks.
It was slightly lower than the prior week, but 4,000 higher than the same week in 2012. The intake of young bulls is making a sizeable contribution to the overall.
Adding 6,000 young bulls to the weekly steer intake of 9,000 is making for a strong male supply, with heifersaccounting for around 8,000 per week and nearly 7,000 cows being supplied.
The cow trade at the factories is also holding very stable at a base range of 330-355 cents/kg for O/P grades, and up to 380 cents/kg for the quality heavier R-grade carcases,
Some farmers say they are negotiating slightly higher prices with processors for better quality cows.
The recent beef trade in the UK was reported to be generally flat with supplies, although tight, adequate to meet demand.
Cattle prices rose last week, with R4L-grade steers averaging equivalent to 454 cents/kg 162p/lb).
On the Continent, there was little change to report, with trade firm across most markets.
Overall, trade continued to be helped somewhat by on-going tight supplies across the different key export markets.
