Prices on course for Christmas peak

THE trade for under 30 months cattle at the factories this week has been the strongest for the season to date, driven

Under 30 months cattle have been quoted at prices ranging from over 91p/lb back to 87p/lb for R grade and, in reality, it has been hard for factories to purchase quality stock for much less than 90p/lb.

But, even if the supplies are scarce and prices high, the factories are also keeping their kill closely in line with actual requirements, because they maintain that the market is getting too hot for them.

Not so, claimed IFA Livestock Committee Chairman, Derek Deane following his election this week as chairman of the important EU Commission Standing Group on Beef Meat of the Advisory Committee on Livestock in Brussels.

He said that the European market has made an exceptional recovery from the BSE crisis and has now returned to balance.

“We should now see a period of stable consumption and balanced market providing stronger prices.”

“At the moment, the average EU male price is E2.72/kg, equivalent to 101p/lb including VAT”.

He admitted that the challenges facing the beef sector in the EU are very significant, but the situation is not without opportunity.

Some of that opportunity for producers with young cattle will arise over the next 10 days, as factories procure supplies for the Christmas trade, generating demand which should bring about a seasonal price the peak, if supplies remain at current levels.

The improved prices are bringing finished cattle out of premia retention and onto the market at the first opportunity, but given the calving pattern of the national herd, the numbers of under 30 months cattle available for slaughter in December will remain low.

Although supplies of older cattle remain high, quoted prices have advanced by up to 4p/lb this week, with factories offering 80p and back to 78p/lb for R/O grades, which is almost as much as some of the young cattle were making a few weeks ago.

Prices for cull cows are unchanged, with the weekly kill running at 9,000 to 10,000 head.

The total kill last week was similar to the previous week at over 40,000.

But the number of steers was down by 1,500 head, which was 5,000 head less than for the same week last year.

In the marts, the numbers of cattle on offer has dropped this week.

Prices have remained firm for the quality cattle, particularly the forward animals with a premium, but plainer lots are becoming more difficult to sell at lower prices.