Markets: Lower kills linked to effect of holidays and weather

Beef prices are holding stable at factories this week, with good demand reported for cattle, as intake eased for the second consecutive week.

The supply dipped to around 28,800 head last week, which was a short working week when account is taken of the Easter Monday bank holiday.

The intake this week will be a more reliable guide to ascertain if a general easing of cattle supply is emerging.

Excellent weather last week, which offered an opportunity to get work done on farms, may have added to the effect of the bank holiday on intake at the factories.

There is no change in the prices being quoted or paid for stock this week.

The improvement in recent weeks has been maintained, but the upward price trend has stalled.

The base price for steers is being quoted at 415-420 cents/kg in general.

Indications from around the country are that most of the steers are being purchased in that range.

There are reports of some processors offering a base of 410 cents/kg, but it is understood that there are very few finishers willing to accept that offer.

Heifer prices are running at a premium of 10 cents/kg over steer prices, ranging 425-430 cents/kg.

As in the steers market, getting the higher end of the price range requires some hard bargaining by farmers.

If the downward supply trend over the past two weeks continues, pressure will mount on processors for further upward movement in prices.

Otherwise, the expectation is that prices will remain at the present level over the next few weeks, and the supply-demand trend will dictate price movement in May (which could be a tight month for supply).

Cow prices are also unchanged, at a base of 350-365 cents/kg for O/P-grade cows.

Finishers with R-grade cows are being offered up to 385 cents/kg, and some are negotiating deals for a few cents/kg more.

The trade for cattle in Britain is reported to have firmed, with R4L-grade steers averaging equivalent to 515 cent/kg (including VAT), and the gap between Irish and UK beef cattle prices continuing at €1/kg.

The UK beef market remains relatively stable with demand best for topside cuts.

In France, there has been little change reported, with promotions last week centred on shanks, rumps, sirloins and diced beef.

In Italy, there has been some slowdown in the market after the Easter pick-up.