Stable prices for strong supply

Marts: Cattle supplies to the factories continued very strong, well above earlier expectations, as the pre-Christmas kill entered the last full week of operation before the festive holidays yesterday.

Intake at a little less than 40,000 head per week has continued to supply the processors with sufficient cattle to undermine any resistance from producers holding out for any improvement in prices being paid for stock.

Except for a firming of the quotes at 286c-271c/kg (102p-97p/lb) for R/O-grade bullocks — some adding a couple of c/kg — there was no change in the prices on offer at the factories yesterday.

Quotes for heifers continued at a base of 6c/kg (2p/lb) more than the bullocks with the exception of young heifers for which demand is positive and minor gains are reported in direct deals with factories for quality stock.

In the east under-24 months heifers were quoted at 297c-280c/kg (106p-100p/lb) for R/O grades with up to 305c/kg (109p/lb) being paid in the midlands and north-west for quality.

The supply shows very little sign of easing pre-Christmas, killing any prospect of stronger prices for pre-Christmas supplies. Last week’s kill was around 39,300 head, showing very little change from the pattern of recent weeks. Bullocks accounted for more than 17,000 head, a slight fall overall, though throughput at the plants is on par with 2006.

On the markets, cattle supplies are reported plentiful in Britain where there has been a slight easing in prices paid to producers who are receiving the equivalent of 307c-312c/kg (109p-111p/lb) including vat for R-grade bullocks. Pre-Christmas demand has led to an improved trade in Italy and the Netherlands.

The cow trade appears to be marginally stronger with base prices for O/P grades at 229c-235c/kg (82-84p/lb).

There is good demand for the heavy quality R-grade cows for which producers are in a strong position to deal for at least 252c/kg (90p/lb), but they may have to shop around.