Signs of price resistance

CATTLE supplies to factories tightened this week and prices hardened further, as demand remained strong.

Price improvements were highest at the lower end of the price scale, as first indications of resistance to price increases appeared at the upper end. But farmers are still “hard selling”, leading to difficulty for some factories in getting sufficient cattle.

Quoted prices improved by 3 cents/kg (1p/lb) in the south and east, where 294 cents/kg (105p/lb) became the norm on offer for R grade stock from most factories. Factories in the midlands were more reluctant this week to increase prices beyond last week’s levels of 105 or 106p/lb.