DEMAND for cattle at the factories has continued to fuel the market this week.
Moves by a number of beef processors to reduce prices for cattle by up to 5 cent/kg for this week’s kill met with strong resistance from farmers.
The quoted base price for steers eased to a range of 400 to 410 cent/kg (143p to 146p/lb), but processors found that very few farmers were willing to move cattle at the lower end of this price range. Instead, many were holding out for a top-up on the higher end of the range, before selling.
The general run of steers are being bought at 405 to 410 cent/kg, and in some cases, up to 5 cent/kg more is being paid, where farmers adopt a hard sell policy.
Heifers are quoted at a premium of 10 cent/kg over the steers, and the margin is the same in the actual prices being paid.
Although the supply of cattle has built up steadily over the past two weeks, demand is outstripping intake across the country. Last week, the intake at the factories increased to 28,135, head which was slightly less than 2,000 head under the same week in 2011. There is plenty of competition between the factories for cattle, and farmers are using this to their advantage in negotiating with the processors, playing one processor off against another in the search for a better price.
The trade for the cows has been strengthening over the past week.
The base O/P grade cows are ranging from 320 to 350 cent/kg (114p to 125p/lb). There is exceptional demand for the quality heavier cows, with up to 360 cent/kg being paid.
There is a well held belief among beef farmers that the cow trade is a barometer for the prime beef prices, and this omen bodes well for the future.
The trade for dry cows in the marts this week is flying, with up to €800 over being paid for good quality continentals — an exceptional price and indicator of the strength of the trade.
The beef trade in Britain is reported to have slowed a shade over the past week. Most of the slowdown is linked to weakening demand for round cuts and steaks, while the best trade is for forequarter product.
Cattle prices in Britain have shown little change, with R4L-grade steers averaging at the equivalent of 430 cent/kg (153p/lb).
On the Continent over the past week, steady beef trading was reported across most of the key markets.
Read more: http://www.irishexaminer.com/business/farming/800-over-for-dry-cows-a-good-omen-180602.html#ixzz1k0aS7pid
Source: newsroom - meattradenewsdaily.co.uk
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