Cull cows brightest spot in the trade

THERE has been a tightening in the supply of cattle to the factories this week, where prices are unchanged for quality cattle, but poorer grading stock are making a shade more, and the trade for cull cows is continuing to improve.

The general quote from the processors for R grade steers and heifers is 246 cents/kg (88p/lb), which is unchanged for the third consecutive week. Most of the factories quoted 235 cents/kg (84p/lb) for O grade stock, which was generally paid last week also, but represents an improvement of 3 cents/kg (1p/lb) from last week's quoted prices.

The brightest spot in the trade continues to be the recovery in cull cow prices, improved a further 6 to 9 cents/kg (2 or 3p/lb), with base prices being offered to suppliers of range up to 207 cents/kg (74p/lb) for the heavy carcasses.

The better quality heavy cows are making 25 to 28 cents/kg (9 or 10p/lb) more at the top paying factories in the country.

The panic selling of cattle by farmers has ended, and supplies are reported to be tighter at all the factories this week.

But processors are strongly resisting any demands for worthwhile improvement in beef cattle prices; they maintain any fall off in supply is only temporary, before the autumn trade gets into full swing.

Markets for beef are generally quiet, which reduces pressure on the factories to secure strong supplies of cattle in the short term.

But they have more or less wiped of the price penalties for over-age cattle.

However, this reprieve for over 30 months cattle is unlikely to be more than temporary, with the over age factor becoming a bigger issue as the trade moves into September, and the higher numbers of March 2003 born animals emerge.

Although the steer intake at the factories has increased in recent weeks, the kill for the week ending August 13 was 3,500 head lower than the corresponding week in 2004, at 15,511 head.

The total throughput at factories was 30,974, compared to 35,340 last year.

There is a bit more confidence in the store trade for cattle in the marts, where prices for quality lots have improved by €20 to €30 per head, and prices are holding for the plainer cattle.

The weanling sales are getting into full swing now, with bulls ranging from €150 to €300 over e1/kg, and heifers making €80 to €160 over.