With supplies of prime cattle still running ahead of processing demand and the Christmas kill coming to an end, the beef trade has come under additional price pressure this week.

Plants have moved to cut base quotes by 2p to 6p/kg and the outlook for the coming weeks is challenging.

After the price cuts are applied, this puts the range of base quotes for U3 steers on 336p to 340p/kg, with heifers being quoted to 342p/kg.

Most cattle agents report that the majority of prime cattle are being bought at 340p to 342p/kg.

Farmers are finding little room to negotiate for an improved price.

Higher prices are limited to larger finishers offloading cattle on a regular supply arrangement.

But even in these cases, cattle agents indicate there is little more than 346p to 348p/kg being paid on in-spec animals.

Lower-grading cattle and animals falling outside of market spec are a difficult trade, with reports of larger price cuts being applied on animals running overweight.

Demand for young bulls is slow, with 336p to 340p/kg being quoted on in-spec animals with one residency.

Delays of one to two weeks in getting cattle slaughtered are still in place and cattle agents indicate they now have adequate numbers on hand to finish out this month.

With two shorter kill weeks over the Christmas period, it seems the backlog of slaughter cattle will run into January.

Last week, the average price paid on steer and heifers fell by 2p/kg to 342.31p/kg.

The average price paid on U3 steers was 350.4 p/kg, with U3 heifers averaging 353.5p/kg.

Cows

Pressure continues to mount on the cow trade, with factories cutting quotes by 10p to 15p/kg this week. This leaves the best quote for an R3 cow on 246p/kg with O+3 animals on 236p/kg. Last week, the average price paid on R3 cows was 253.4p/kg, with O+3 animals averaging 233p/kg.

Lamb trade

The lamb trade has eased slightly this week, with the plants applying a 5p/kg cut. Quotes are at 405p/kg, which makes a lamb worth £89.10 at the 22kg limit.

In the marts, prices were steady on Monday, but eased by 10p/kg on Tuesday, despite southern buyers backed by a very strong euro.

On Monday in Kilrea, they sold 500 lambs from 365p to 439p/kg, little changed on last week. Massereene sold 1,226 lambs making from 365p to 398p/kg, also little changed from last week.

On Tuesday, Saintfield had a big show of 1,092 lambs making from 360p to 430p/kg, down by 10p/kg for heavier lambs. In Rathfriland, 1,000 lambs sold from 355p to 411p/kg and averaged 377p/kg, down 10p/kg on last week. The heaviest lambs sold to £94, with a big run from £75 to £88/head.

Ewes

The fat ewe trade is holding up and good-quality well-fleshed ewes made excellent top prices. The top price in Newtownstewart was £75 and in Omagh, it was £106 for 208 sold. Swatragh sold 100 head to £137. The top in Massereene was £92. In Kilrea, ewes sold to £117 and in Saintfield to £90. Rathfriland sold 83 ewes to £93.

In Ballymena on Monday, forward store lambs were a very good trade. Most were Texels making from £65 to £80/head. Ewe lambs were a good trade, with Texels making up to £72.50/head.

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