Reduced grass supplies in the east and south of the country are starting to take some effect on the cattle trade, with a number of mart managers reporting reduced activity this week, especially in the south.

Grass growth is below average due to a soil moisture deficit. While there is rain forecast for the weekend in many parts of the country, it’s going to take a few wet days to put things back to normal on a lot of farms.

There are also some reports of beef farmers availing of the big demand in silage and hay in the south and baling up aftergrass as opposed to buying cattle to graze it.

Taking a look at the MartBids analysis table this week, it shows that the trade is back a little across a lot of categories of stock, with weanlings taking the biggest hit this week.

The top third of bull weanlings in the 300kg to 400kg weight bracket are back 29c/kg this week, with 400kg to 450kg bull weanlings in the same quality bracket back 15c/kg on last week’s trading.

A number of bigger bull buyers are still buying strongly in this heavier age bracket.

Heifer weanlings are also back, with the exception of light heifer calves in the 200kg to 300kg weight bracket being up in price across all categories.

Some smaller feeders I have spoken to this week are really worried at the prospect of high feed prices and what effect it will have on already non-exsistent margins this winter.

The fact that factories are not willing to sit down with these smaller operators is further eroding confidence in the cattle trade.

Older cattle are a steadier trade, with factory agents and factory-aligned feedlots driving the trade in a lot of marts.

Top-quality bullocks in the 500kg to 600kg bracket are selling for €2.85/kg this week, with top-quality heifers in the same weight bracket also making €2.85/kg this week.

Lesser-quality bullocks are back at €2.50/kg, with Frieisian bullocks coming in around €2.10/kg to €2.30/kg, depending on flesh cover.

Plainer, heavier heifers over 600kg are working off €2.40/kg to €2.60/kg. Lighter Aberdeen Angus and Hereford heifers are selling around the €2.10/kg to €2.30/kg mark, depending on quality.

Driving the trade

Factories continue to drive the trade in the cull cow ring, with the trade very strong for well-fleshed heavy cows.

Elphin Mart had a couple of pens of heavy young cows on Monday night and factory agents and a number of wholesalers fought it out for the top cows. A number of cows around the 900kg mark hit €2,500, with the top call of €2,600 going to a Charolais cow weighing 940kg.

If we take it that that cow has to come into €2,750 by the time all costs (commission, haulage and killing) are paid, she needs a beef price of €5.31/kg to break even. That’s based on a carcase weight of 507kg at a kill-out of 55%.

The best quote I have heard of this week is €5/kg and that’s for a load of good cows. Based on these figures, farmers would be better off in the mart ring as opposed to the factory lairage, especially if they are dealing with small numbers of cows.