Growing scarcity in supplies is driving increased competition in the cattle trade. Prices have increased in cases by 5c/kg to 10c/kg since the end of last week, with a growing differential in the returns received between frequent sellers or those with large numbers on offer and producers trading low numbers.

The weekly kill increased to 31,716 head last week, but was still 2,236 head short of the kill in the week before St Patrick’s Day.

Reports suggest the kill is likely to be even lower this week, with factories taking steps to attract higher numbers forward.

At the higher end of the market, a base of €4.00/kg has been paid for steers, with some sellers holding out for higher.

There are very few in-spec continental steers moving below a base of €3.90/kg and a rising number of sellers with more negotiating power are securing a base of €3.95/kg.

A similar trend is present for heifers, with agents competing with greater intensity. Base prices are starting at €4.00/kg, but sellers should note there is higher being paid as the week progresses.

Many sellers are not willing to move heifers below a base of €4.05/kg, while producers trading at the higher end of the market are securing a base of €4.10/kg to €4.12/kg.

Some of these deals have also included a supplement or covered transport costs, with agents not willing to lose out on stock.

Factory agents have also become much more active in mart sales and possess greater buying power for slaughter-fit cattle. This is giving another sales avenue for farmers with out-of-spec stock that are overage or possess more than four owners. See MartWatch pages for more details.

Bull prices are also strengthening, although the speed of the increase is slower. R grading bulls range from €3.85/kg to €3.90/kg, with U grades rising to €4.00/kg. This excludes producer bonuses for suppliers with producer-processor arrangements.

Weight is becoming less of a stumbling block in negotiations, with many plants increasing carcase weight limits to 450kg, while others are paying to 480kg or even higher where there is only a small percentage of the group in this category. Bulls less than 16 months and trading on the grid are selling on a base of €3.95/kg to €4.00/kg.

Strong cow demand

At 6,130 head, cows make up a slightly lower percentage of the kill than in previous weeks. Demand has also strengthened, with prices rising 5c/kg. P+3 grading cows are selling in general from €3.00/kg to €3.15/kg, but prices of up to €3.20/kg to €3.25/kg have been paid for sales involving high numbers.

Likewise, O grades are trading on average from €3.20/kg to €3.30/kg, but 5c/kg to 10c/kg higher has been secured. R grades are ranging from €3.40/kg to €3.50/kg, with reports of up to €3.60/kg paid for heavy fleshed cows.

NI and British trade

The trade is also moving upwards in the north. Base quotes have increased 2p/kg to 4p/kg, with most sellers starting at a U-3 base of £3.44/kg to £3.48/kg (equivalent of €4.18/kg to €4.23/kg at 86.5p to the euro).

Regular sellers are securing 4p/kg to 6p/kg higher, with reports of sellers trading at the top of the market securing prices rising into the high £3.50s.

This is in contrast with Britain, where prices eased again by 1p/kg last week, with R4L steers and heifers averaging £3.56/kg to £3.58/kg (€4.33/kg to €4.35/kg).