Tight factory supplies mean marginal price gains
Neither farmers or processors are willing to concede an inch to the other with the rein on prices.
Base prices being quoted for steers this week range from 410 to 420 cent/kg (146p-150p/lb).
Processors are finding it very difficult to get stock at the lower end of this range, and few are moving for less than 412-415 cent/kg in the south of the country, while prices further north are 3-5 cent/kg harder on average.
The premium over steers on prices quoted for heifers has eased a shade to an average of 10 cent/kg, and actual prices paid are ranging 10-15 cents/kg higher, depending on local supply and demand.
Although overall intake slipped to 23,640 head, or 1,000 less than the previous week, there was an increase in the supply of steers, from 5,700 to 6,200 head, and the heifer supply was up, at 6,300 head last week.
Processors are going through their leanest period of the year, with finished stock coming off grass later than had been expected, after the early spring bite was following by very poor growing conditions in late April and through most of May.
Despite pressure on processors to get stock, they are maintaining their resistance to conceding any significant increase in prices.
Cattle supply levels into July will be critical for prices, but the holiday season at meat plants will bring some latitude for processors.
The easier tone to the cow trade in recent weeks is continuing, coupled with a continuation of strong supplies of cows to the factories.
Some processors are quoting base prices for the plain P-grade cows back to 330 cent/kg, while the general run is ranging from 350 to 375 for O/P grade cows, and quality R-grade cows are selling for up to 385 cent/kg.
The cattle trade in the UK is reported to have held steady over the past week.
Cattle prices are holding steady, with R4L-grade steers averaging equivalent to 445 cent/kg (149p/lb).
On the Continent, trade across most of key markets is remaining steady.
