LMC: Average R-3 Price of 383p/kg Shows Quotes Are Up For Negotiation28 May 2013
UNITED KINGDOM - Sellers are being advised to treat quotes as merely a starting point with traditional breeds achieving 55 pence bonuses per kilo and average prices 5p/kg above quotes.
Base quotes from the plants this week for prime cattle were 372-376p/kg but with cattle availability remaining tight, top quotes of 378-380p/kg are expected for Monday. There are ongoing reports of deals being done well above the quoted price and quotes should therefore be used as a starting point for negotiation.
Particularly good deals are being done for traditional breeds at the moment with reports of a 55p/kg bonus available for Hereford cattle (O= and better) in one plant last week.
The top base quote from the plants last week for R-3 steers was 370p/kg with the additional 8p/kg bonus for in spec cattle taking in to 378p/kg.
However the average price paid for an R-3 steer in NI last week was 383p/kg. Given that not all R-3 steers fulfilled all the criteria for the 8p/kg bonus and that some plants had base quotes as low as 364p/kg it is obvious that markedly higher prices are available than quotes would
The NI prime cattle kill last week totalled 7,153 head with 1,866 cows also slaughtered. The continued high cow kill reflects the difficult production conditions on NI farms with the continued forage shortages, high cost of concentrates and problems with cash flow.
Exports of cattle to GB for direct slaughter last week totalled 304 head, taking the total for the year to date to 5,700. Exports to ROI for direct slaughter last week totalled 236 head and consisted of 115 steers and 121 cows.
Meanwhile imports of prime cattle from ROI for direct slaughter in NI plants was similar to the previous week at 493 head, accounting for seven per cent of the NI prime kill.
Average steer prices in NI last week increased by 3p/kg to 375.7p/kg with average young bull prices up by the same margin to 356.8p/kg. Average heifer prices in the region were back by half a penny to 378.3p/kg.
Meanwhile R3 steer and heifer prices were up in the region of 2-3p/kg to 383.3p/kg and 385.4p/kg respectively. In GB average steer and heifer prices were within 1p/kg of the previous week at 400.9p/kg and 397.3p/kg respectively.
Steer prices increased in all the regions by 1-2p/kg with the exception of Southern England where the steer price was back slightly to 384.5p/kg. Average heifer prices increased by 3-4p/kg in Scotland and the Midlands and were within half a penny of the previous week in Northern England.
In Southern England however the average heifer price was back 7.4p/kg to 377.2p/kg, taking it below the average NI price. Prices in ROI last week showed strong increases as the trade strengthened with an increase in the prices paid for all reported grades of prime cattle.
The average R3 steer price in ROI last week was the equivalent of 368p/kg , up 5.2p/kg on the previous week. The R3 heifer price increased by 4.5p/kg to 389.9p/kg. The prices being paid for O
grading cows in ROI last week were fairly similar to NI prices but P grading cows attracted higher prices in ROI than available in NI.
The P2 cow price in ROI last week was 261.6p/kg, 7.1p/kg higher than the corresponding NI price. Meanwhile the average P3 cow price in ROI last week was the equivalent of 293.8p/kg, 12.7p/kg higher than the NI average price last week of 281.1p/kgTheCattleSite News Desk