Beef trade firm as improved prices offered
While overall markets are reported to be quiet in the post-Christmas trade, the replenishing of stock following the Christmas sales led to demand for limited quantities of cattle at the factories and competition for young stock, resulting in improved prices on offer to fill the demand.
The young stock were generally quoted at 90p/lb for R grade, but given the marts are making a slow return to trading and fewer producers than normal were offering cattle to the factories yesterday, processors paid over the quoted prices to entice out sufficient supplies.
A gap of up to 5p/lb has opened up between R and O grades with Os generally quoted at 87p-85p/lb.
There is, however, less certainty on the price going forward and some of the processors are very anxious to get prices back as quickly as possible, with hints that prices may be pulled during the second half of this week.
That will depend entirely on the supply situation freeing up, but there is a real danger to prices weakening if supplies increase because the export markets are at a low ebb.
Following strong trading in the weeks up to Christmas the processors are bracing themselves for somewhat leaner trading for the opening weeks of 2004. However, supplies of under 30 months cattle should remain very tight for some time during which the balance between supply and demand will have a big influence on price.
There were very few animals on offer at the marts which resumed business yesterday.
Prices showed very little change from before Christmas. Kilmallock Mart had an early finish with a very small entry in cattle and calves.
There were just over 100 calves on offer at Bandon mart for the opening sale of 2004 and prices were well-maintained.
