Mid-April price weakness ominous

QUOTED prices for quality cattle were all unchanged at factories this week, but the underlying tone of the trade isn’t encouraging, particularly for the poorer grading cattle, with the first signs of a downward price trend emerging.

Although cattle prices are steady in Britain, and returns generally from the export markets are stable, quieter continental markets are hitting beef sales volumes, and there has also been a sharp increase in the supply of steers to factories — a combination likely to drive prices down.

The supply of steers for processing plants has increased by 25%, fully recovering ground lost in March, and with the supply more than adequate to meet the quieter market requirements, there is no pressure on factories to get cattle. Processors would be concerned about how cattle farmers might react to a price cut in mid-April; nevertheless, there has been some weakening of prices for lower grade animals, with the O grade over-age cattle being quoted at 280 to 283 cents/kg (100p or 101p/lb), and more resistance to price top-ups on quotes for Rs.