Tight supply forces reluctant processors to pay more
Unofficially, the farmers have gained slightly, as supplies remain very tight, and processors have, very reluctantly, conceded a slight increase on price, in order to get cattle.
But their determination to keep a brake on upward movement in prices remains firmly in place, despite the best efforts of farmers to put pressure on them.
Quoted base prices for steers remain at 400-405 cent/kg (143p-145p/lb). Reports from around the country indicate that most farmers are being paid at the upper end of this range, but more than 405 cent/kg is being resisted by processors — although some deals at 408-410 cent/kg for steers were negotiated this week.
Quality assured cattle are entitled to the 6 cent/kg bonus, and a good percentage appear to be getting this bonus.
The overall national average base price for steers increased to 409 cent/kg for the week ending Mar 18. (for the very latest on last week’s returns see the table on the next page.) These prices, compiled by the Department of Agriculture officials each week, are the most definitive available actual prices being paid for stock, and include any bonuses or penalties applied. It is well worth watching their trend, as a good barometer of the trend.
Heifer prices are also steady, at 5-10 cent/kg over steer prices, and the national average reported by the Department is running within 8-10 cent higher than the steers. Similar to the steer trade, some farmers are doing deals for up to 413-415 cent/kg.
All of the indications are that the processors are more determined than ever to continue to hold the rein on prices this year.
Intake last week slipped back slightly to around 23,825 head, compared to 32,100 for the same week in 2011. The year-on-year drop should be more than enough to put the processors under extreme pressure for more cattle.
The trade for dry cows has continued very strong, with improved prices at the lower end. The base prices for O/P grade cows are 330-355 cent/kg (118p-126p/lb) in general, with some of the heavier cows commanding up to 10 cent/kg (4p/lb) more. and up to 375 cent/kg (134p/lb) reported for the quality R-grade heavy cows.
The trade in the UK is reported unchanged over the past week, with market demand being matched by availability, and a good trade still evident for most cuts.
Cattle prices, however, have firmed, with R4L grade steers averaging at Stg 347 pence/kg which is equivalent to 436 cent/kg(156p/lb) adjusted for VAT.
On the Continent, there was little change reported in trading as some increase in pre-Easter promotional activity continued to help maintain demand.
