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After several weeks of sustained pressure on cattle prices, there are signs the trade is turning the corner with growing processing demand.
Since early March, base quotes on prime cattle have fallen from 334p/kg, with paid prices ranging from 340p/kg to 350p/kg. Last week, base quotes fell as low as 306p/kg. However, most plants held at 316p to 320p/kg for U-3 grading animals, with deals above quotes extremely limited.
As such, the fall in cattle prices has left farmers incurring heavy losses on cattle purchased last autumn and offloaded in recent weeks.
However, there are some positives within the beef trade this week, with farmers and some cattle agents indicating that supplies have tightened significantly. The short-term outlook is also pointing to finishing cattle being harder to come by in the months ahead.
Many cattle agents have become anxious about securing numbers and are showing much more appetite for stock
As a consequence, many cattle agents have become anxious about securing numbers and are showing much more appetite for stock.
Several farmers indicate they have been contacted by agents on multiple occasions this week enquiring about the number of cattle likely to come on the market next month.
With farmers in a stronger position to negotiate on price, deals are being offered well ahead of base price.
Reports from farmers selling cattle indicate that deals from 4p to 10p/kg above base are being offered, putting steers on 324p to 328p/kg. Heifers are moving closer to 330p/kg for regular finishers.
Young bulls are moving at 320p/kg with more on offer where bigger numbers are available. Last week, the average price paid on steers and heifers fell by 1.4p to 315.56p/kg, with U3 steers down 1.6p to 322.6p/kg. The average on U3 heifers was 326.6p/kg, down 2.4p/kg on the week.
Cows
With signs that the food service sector is beginning to reopen, demand for cull cows is growing. However, quotes remain unchanged on 245p/kg for R3 grading animals and 235p/kg for O+3 animals.
Lamb trade
The trade for spring lambs is on the slide this week as demand weakens, both locally and in continental markets. Quotes at the factories are down and prices paid in the marts are also lower.
Quotes for spring lambs are 490p to 500p/kg deadweight. However, the higher quote is likely to be shortlived. At 490p, a lamb is worth £102.90 at the 21kg weight limit.
The number of hoggets coming out is in decline and quotes are on 450p to 460p/kg. Like lambs, the higher quote could well be shortlived. At 450p, a hogget is worth £99 at the 22kg weight limit.
At the marts which are open for sheep sales, prices are back by £10 to £15/head, with the main run of spring lambs making from £98 to £105/head.
As an example, a pen of top-class U grading lambs at 22.8kg half-weight made £100head this week. Hogget prices are also back and in the range of £90 to £95/head.
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