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Demand for prime cattle is on the rise, as retailers react to the surge in fresh beef sales throughout the UK caused by the COVID-19 virus.
Unfortunately, at the present moment in time, this upturn in processing demand is not filtering through to cattle prices.
Base quotes have been hard to come by this week. But where plants were quoting, there was some easing of base prices at the top end of the quote range. This puts prime cattle on an official quote range of 324p to 328p/kg for U-3 grading animals.
However, farmers selling cattle indicate that factory agents continue to pay 332p to 336p/kg as a starting price for animals fitting the UK retailer specification on conformation and weight limit.
Steers are moving freely at the outlined prices, with an additional 2p to 4p/kg on offer to larger finishers.
Young bulls under 16 months of age that meet carcase weight limits are moving at prices similar to steers.
In-spec heifers are mostly moving from 342p to 346p/kg, but more is on offer for butcher-type animals, with prices of 350p/kg reported.
With a major slowdown in the food service sector, cattle that fall outside of the UK retailer spec are a much harder sell and farmers have little scope to negotiate beyond base price.
Last week, the average price paid across all steers and heifers rose by 1p to 332.7p/kg. The average price paid on U3 steers averaged 340.2p/kg with U3 heifers on 344.5p/kg.
Cows
After a brief period of rising demand, the slowdown in the food service sector has undermined processing demand for cull cows.
Processors have left base quotes unchanged, which keeps R3 grading animals on 260p/kg, while O+3 animals are holding on a top quote of 250p/kg.
With a decline in processing demand, deals on offer above base prices are less widely available compared to recent weeks.
Hogget trade
The hogget trade has eased by 10p/kg, with quotes of 480p/kg on offer this week. This makes a hogget worth £105.60 at the 22kg weight limit.
In the marts, there was a good supply of hoggets coming forward, but the trade was mostly down on the previous week. The coronavirus is creating uncertainty in the sheep market and buyers are much more cautious around price.
In Kilrea, 250 hoggets sold from 433p to 455p/kg. The trade was reasonable in the circumstances, with prices up by 8p to 13p/kg.
Massereene sold 967 hoggets, mostly heavier lots, and prices ranged from 435p to 504p/kg. Hoggets at 26kg to 29kg made £110 to £115.
Rathfriland had a sale of 470 hoggets making 400p to 470p/kg, with a sale average of 418p/kg, down by 15p/kg on the previous week.
In Lisahally, there was a small show and trade was easier. Hoggets at 23kg made £99, with 25kg making £106/head. Top-class E grade hoggets at 23.5kg made £115.
Ewes
In contrast, demand for well-fleshed ewes remains very strong, with exceptional top prices in all marts. Top price in Newtownstewart was £129 and £142 in Omagh. In Swatragh, top price was £176 for 350 head sold. In Massereene, top price was £167 and in Kilrea, ewes made £170. Rathfriland sold ewes to £185/head.
In Ballymena, ewes with twin lambs at foot were a strong trade with a Texel ewe with twins making £262. Others made from £172 to £188 for twin outfits. Springing ewes sold from £127 to £162 for Mules and Crossbreds. Store hoggets sold to £82/head.
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