Factory agents have been more active in sourcing cattle in recent days, with some early signs that numbers available could be tightening. Some agents remark that they are further through their normal supply base than previous years, while in other areas, some point to more numbers in the system, but comprising Friesian stock that will likely go back to grass.

The greatest movement in price is in steers, with more sellers having success in securing a base of €3.80/kg in recent days. There are still some cattle trading at a base of €3.75/kg, but the volume is lower than this time last week. There are also reports of higher paid to producers trading at the top end of the market.

The strength of dealers purchasing in marts is also linked to the wide differential in factory prices

Heifers are moving in the main at a base of €3.90/kg, but deals have been completed for large lots at a base of €3.92/kg to €3.95/kg, with allowances given to others on transport costs. Agents remain active in marts where numbers of slaughter-fit cattle are also in tight supply, with the exception of some special sales taking place.

Firm cow trade

The mart trade also remains a good outlet for sellers with weak negotiating power on cows. The prices paid in many cases would require factory prices secured at the higher end of the market to have any hope of delivering a margin. The strength of dealers purchasing in marts is also linked to the wide differential in factory prices.

P+3 grading cows are selling anywhere from €2.90/kg to €3.05/kg, with regular sellers securing even higher for mixed lots. Fleshed O grading cows are selling from €3.10/kg to €3.25/kg, with R grades rising to €3.35/kg to €3.40/kg. U grades are trading from €3.40/kg to €3.50/kg.

Bull throughput steady

The bull kill is holding steady and is averaging around 5,000 head in recent weeks. R grades are trading from €3.75/kg to €3.85/kg, with regular sellers securing 5c/kg higher, while U grades are selling from €3.85/kg to €3.90/kg and again 5c/kg higher to large producers. Bulls less than 16 months and trading on the grid are moving at a base price of €3.75/kg to €3.80/kg.

GB trade easing

Pressure remains on British prices, with R4L steers and heifers falling just below an average of £3.60/kg for the first time since prices largely levelled off last autumn. The reduction in average prices is being partly contributed to by Scottish prices continuing to weaken.

AHDB analysis shows Scottish prices falling from £3.85/kg (€4.77/kg at today’s exchange of 85p to the euro and 5.4% VAT) at their peak last autumn to £3.63/kg (€4.50/kg) last week. Prices have fallen by 8p/kg to 10p/kg since Christmas, during which time English and Welsh prices have fallen by an average of 6p/kg.

The continuous decline, which the AHDB contributes to higher supplies and stock present in chill rooms, has left just a 4p/kg differential to English and Welsh prices, much lower than the premium it normally commands.

Meanwhile, in Northern Ireland, there is no real change in the trade, with quotes still ranging from £3.42/kg to £3.46/kg (€4.24/kg to €4.29/kg). Regular sellers continue to command a premium of 4p/kg to 6p/kg above base quotes, with supply finely balanced with demand.

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