Mart prices take another hit as Brexit uncertainty festers

LAST week mart reports suggested that the 500-600kg bullock was up by €20-30/hd in some places as buyers began to measure the looming impact of Brexit.

This thinking suggests that the 500-600kg forward store may offer a more stable and reliable asset in the short to medium term than lighter stock who would only come into beef after British Prime Minister Theresa May triggers article 50 at the end of next March.

The reality is there is no way of telling what the exact situation will be.

However, those in business do not like uncertainty and at present many at the coal face in the cattle business are hedging their bets.

So while those 500-600kg bullocks did rise by that €2030/hd in some places the combination of continuing beef price pulls — this week’s quotes are €3.60/kg for bullocks with heifers on €3.70/kg — coupled with the nervousness around the prospects for next year sees this week’s ringside tables drenched in red ink as everything with the exception of the 400-600kg weanling bulls and heifers taking a hit last week.

The main positive on the bullock table is that price fall was fairly consistent across the various weight divisions. Those in the 500-599kg suffered the least - down 4c/kg on average while the 400-499kg bullock was the biggest loser at 6c/kg on average. This left the lighter 300-399kg and the 600kg+ bull- ock both easier by 5c/kg or from €15-30/hd all in on average

The heifer table shows a wider variation, with the 600kg+ heifer back by 2c/kg or €12/hd, while just under that weight the 500-599kg heifer dropped a more significant 7c/kg on average or from €35-42/hd. Those from 400-499kgs saw losses of 4c/kg while the lighter 350-399kg animal fell by 5c/kg or €17.50-20/hd.

Once you move into the weanling ring the price drop becomes considerably more marked with lighter 100-299kg bulls suffering the worst by losing 19c/kg or €19-57/hd.

The price fall isn’t as dramatic in the 300-399kg section but even at just 5c/kg the rounded up figures from €15-20/hd are still going the wrong way for those selling.

The story is broadly similar in the heifers with those under 300kg losing 11c/kg on average or from €11-33/hd with the 300-399kg animal back 6c/kg or 18-24/hd on average. However, on a more positive note, the 400-600kg bull rose last week by between €8-12/hd or 2c/kg with his 400-550kg sister up a more significant 9c/kg or €36-50/hd.

With sterling continuing to wobble, trade deals done with Canada on beef import quotas into Europe and factory prices less than favourable the only certainty at present is uncertainty. But for some farmers the current spell of good weather in many parts of the country provides a silver lining.