Heifer prices go 12c up on steers

CATTLE supplies have increased over the past few weeks, and a further rise was on the cards this week.

Faced with weak market demand for beef, processors have cut quoted prices for steers by up to 6 cents/kg (2p/lb).

Demand is stronger and supplies are tighter in the case of under 24 month heifers, resulting in prices for them holding, with 12 cents/kg (4p/lb) more than the steer price offered.

Processors in the south and east of the country quoted this week for R grade steers at 280 cents/kg (100p/lb). There is 3 cents/kg (1p/lb) more on offer in the midlands and a further 3 cents/kg on offer in the north west.

In recent weeks, processors have been paying 6 to 9 cents/kg (2p or 3p/lb) over the quoted prices for steers, as producers resisted price cuts. But processors are not under as much pressure to get cattle this week, due to very weak markets, and stocks of fore quarter beef continuing to build up.

Nevertheless, it remains to see how many farmers “take the bait”, at 280 cents/kg for R steers.

For the O grade stock, quotes have been reduced this week to 266 cents/kg (95p/lb).

Under-age heifers continue to be a brighter trade. Processors quoted 292 cents/kg (104p/lb) for Rs in the south and up to 6 cents/kg more in the north west. There are reports of up to 302 cents/kg (108p/lb) being secured for quality heifers. O grade heifers are making 6 to 9 cents/kg (2p-3p/lb) more than the steers.

Intake at the beef factories is now running at 1,000 to 1,500 head per week behind the level of 12 months ago, but the markets for beef are considerably less buoyant than they were at this time in 2006.

For cattle farmers, a worrying aspect of the trade is that large stocks of forequarter beef are continuing to build up in the cold stores at the factories, and like the bad weather, there are no signs of brighter skies ahead.

Continental markets are at best steady in low demand.

Cow prices are within the same range this week, at 212 to 224 cents/kg (76p to 80p/lb) for O and P grades. There is more available for heavy cows by shopping around to find the factory that needs cows on any particular week. This changes from week to week; for example, R grade cows are making at least 252 cents/kg (90p/lb) at the best paying plants.