Pendulum swings back in favour of the farmer
Steers Heifers Cull Cows Young Bulls THERE were signs of positive movement in the factory trade yesterday.
It seems the pendulum has begun to swing back in favour of the farmer. I had hints last week that numbers might be about to tighten when reports reached me that some with lesser conformation stock to sell had secured, in effect, a flat price when they succeeded in putting a floor under their P grade bullocks. That floor was €3.70/kg.
Top end prices for both bullocks and heifers have moved up 5c/kg — by top end I mean the in-spec cattle. This left prices for bullocks yesterday morning floating between €3.90-3.95/ kg, with heifers in general on €4.05/kg.
However, I also had reports that those with Hereford and Angus bullocks to sell were being quoted as low as €3.85/kg, with the line being pedalled when questions were asked: “Won’t you be alright, sure isn’t there a 10c/kg bonus”.
No, you won’t be alright because getting your bullocks to grade into the bonus can be a tricky equation.
If they don’t make the quality assured grades to get the bonus your neighbour with his Friesians on a base of €3.90/kg and no bonus is 5c/kg better off.
The ICMSA’s Des Morrison continues to keep a close eye on cull cow prices.
“The good quality R and U grade cows went up last week by 10c/kg to €3.403.60/kg,” he said.
Morrison claimed that agents he had spoken to while not overly keen on poorer quality appeared to be under instruction not to leave anything of quality and cover behind them.
This is good news for the suckler men.
And while Des is right that factories are not keen on poorer quality, those who have lesser conformation cows with cover this week see their price also rise by 10c/kg.
In general U grade cows are on €3.60-3.50/kg, with Rs at €3.40, O grades are €3.20-3.25/kg, while the P+ animals edge up to €3.00/ kg with the lesser Ps back at €2.80-2.70/kg.
Bull prices
Last week’s base price spread for under 16-month bulls of €3.85-3.90/kg seemed to be on the point of being replaced by €3.904.00/kg yesterday morning.
Under 24-month bulls see a price spread of €4.00-4.05/ kg for U grades, and back to €3.80-3.85/kg for O grades, with Rs making €3.90-3.95/ kg.
The other figure of interest is last week’s kill which was 30,482. This looks very good for a short week due to the bank holiday, so this week’s figure will give a more accurate figure as to the trend.
The IFA’s beef chairman Angus Woods said cattle prices are steady this week, with bullocks making €3.90/ kg and heifers on a €4/kg as base prices. He said tighter supplies are leaving farmers in a stronger position to negotiate deals above quoted prices particularly for in-spec cattle.