Both agents and processors are weary. Their sole focus today will be on one thing – the value of sterling.

Currently, sterling is trading above the 80p to €1 mark, a level last reached briefly in the first week of April. It makes doing business more difficult for Irish exporters, though cattle prices have in fact increased since April.

Factories have been pressing cattle prices over the past week, though in Northern Ireland they are actually strengthening at present. In the short term, Irish cattle prices will be decided by the reaction of farmers selling cattle. If there is panic to sell, prices will come under pressure but agents report no great supply of finished steers and heifers, which leaves farmers in a stronger negotiating position than they may realise.

Cattle supplies at this time of year are always tight – grass cattle are generally not fit. Also, when thrive is good and, importantly, cheap many farmers will be in no rush to offload cattle. High store prices compound this – farmers are reluctant to sell as they cannot justify replacing slaughtered cattle at current mart prices.

Fast recovery

IFA livestock chair Angus Woods said there is nothing to indicate that the sterling cannot recover quickly. He added that as the dust settles, the initial reaction will have been a knee-jerk one. Woods also referred to the deficit in prime cattle supplies highlighted by the AIM system in previous weeks as a positive for beef producers.

The IFA has said it will be strongly arguing that processors/other purchasers cannot be allowed to take advantage of this short-term uncertainty by pulling prices.

What is clear at present is that the currency ball is still bouncing. Many agents will be reluctant to buy this week, instead waiting to see where things settle. If active, they might try to source cheaper cattle in the coming days as a safety net.

Should sterling remain weak, it is likely that potential losses will be absorbed into British beef prices, which are rising at present.