Finishers regain more control after one of the toughest spring finishing seasons
'Cattle supplies have tightened and the finishers have regained more control after one of the toughest spring finishing seasons in years,' explained one supplier this week.
The turnaround of the trade for finished cattle at the factories is continuing this week with further improvement on returns to producers as the supply slumped to a new year low.
In the heatwave weather farmers turned to hay and silage and intake of cattle at the factories dropped by a further 3,000 head, making for a decline of over 6,000 head over two weeks to a year-to-date low weekly supply.
While there are some variations around the country, steer and heifer prices have strengthened by around 10c/kg in general with the suppliers reporting that they have regained more control of the market.
The general base for steers is around 630c/kg with some suppliers reporting that there is a "bit more" to be got from factories which are actively looking for cattle.
Heifers are following a similar trend on a general base of 640c/kg and suppliers report that deals of up to 640c/kg are being secured.
At the top of the market, there are reports of some factories willing to engage in deals to pay up to 650c/kg for quality steers in the 300-400kg carcass range.
"Cattle supplies have tightened and the finishers have regained more control after one of the toughest spring finishing seasons in years," explained one supplier this week.
"I'm still not optimistic enough to predict that prices will recover to par with last year, but the decline appears to have bottomed out at the factories and there is some recovery which is positive," he added.
The turnaround on prices by the processors has come on the back of supply falling to the lowest weekly intake year to date and once again there is a sparkle in the age old theory that fewer cattle can mean higher prices.
Adding in the quality assurance bonus and breed bonus for Angus and Hereford, and the heifer prices are edging closer to closing in on €7/kg this week with the farmers' cheques strengthened by €50-€75/head on a month ago without taking account of weight gain.
An added positive indicator of factories feeling some pressure to source sufficient stock is reports that some agents are willing to negotiate on 'flat' pricing for stock this week.
Cow prices have also made gains of 10-15c/kg with the factories who specialise in supplying the manufacturing sector in particular, very anxious for supplies of well-fleshed cows at up 620-630c/kg.
The trend is upwards also for young bulls showing gains of at least 10c/kg at up to 650c/kg for Rs showing a premium over the equivalent grade steer.
Supply came to 23,863 head last week, down 5,000 head on the same week last year. The intake included 8,345 steers, 6,556 heifers, 6,103 cows and 2,402 young bulls.
