A tightening in the supply of finished cattle across NI is boosting factory prices for prime animals.Multiple sources indicate that 490p to 494p/kg is on offer for in-spec steers and heifers this week.
A tightening in the supply of finished cattle across NI is boosting factory prices for prime animals.
Multiple sources indicate that 490p to 494p/kg is on offer for in-spec steers and heifers this week.
The prices are well above official base quotes, which have increased by 2p this week to 476p/kg for U-3-grading animals.
At the upper end of the market, regular finishers with greater negotiating power are commanding deals in the region of 500p/kg in return for bigger numbers.
Young bulls meeting specifications on carcase weight and conformation are moving at 484p to 486p/kg, with isolated reports of deals being agreed above this level.
The return of schools for the autumn term has bolstered processing demand for manufacturing beef, breathing new life into the cull cow trade.
Quotes on O+3 cows have jumped 5p/kg to 375p/kg as a consequence, with good-quality R-grading animals trading between 380p and 400p/kg.
Such is the level of concern around cattle numbers at present, factory agents are actively contacting farmers about securing stock.
But with farmers receiving repeat calls and yard visits from agents working for competing plants, the balance of power is firmly on the side of finishers with stock to sell.
As an added incentive to higher prices, deals on offer include transport, flat rate deals on out-of-spec animals, as well as penalties waived for exceeding carcase weight limits.
Marts
In the live trade, numbers of heavy-fleshed and slaughter-fit cattle are also extremely limited, intensifying buying competition at the ringside.
Animals in this category are up 10p to 15p/kg over the past fortnight, coinciding with the upturn in buying demand at processor level.
Mart data shows good quality continental steers regularly made 290p/kg over the past week, rising above 300p/kg on numerous occasions for in-spec animals.
At the outlined prices and assuming a high kill-out of 59%, mart prices are equivalent to factory prices of 490p to 510p/kg.
Britain and ROI
Tighter supplies are also having a positive effect on prices for finished cattle in Britain and the Republic of Ireland.
Price reports indicate plants in Scotland and northern England are in the region of 510p/kg for U-grading animals, while Irish plants are paying 440p to 450p/kg for U-grading steers and heifers.
Short-term forecasts show that trend is likely to continue through early September, keeping a firm floor under the beef trade.
Read more
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