Beef prices look set to hit record levels as the scarcity of finished cattle intensifies on both sides of the Irish border.

With the trade in favour of farmers with cattle to sell, those offloading animals report that cattle agents are opening on 396p/kg with 400p/kg widely available on in-spec animals. Higher prices are being paid to specialist finishers on a weekly kill arrangement.

Other farmers indicate flat rate deals are on offer at 396p to 398p/kg for heavy cattle likely to exceed carcase weight limits. Such deals also include free transport to secure numbers.

Deals are also being offered on cull cows with 340p to 350p/kg freely available for good quality suckler types.

With supplies of shed finished cattle almost exhausted, and little prospect of animals being finished off grass until late summer, processors are extremely concerned about throughput in the coming weeks.

Higher prices

Last week, the average price of U3 grading steers increased by 2p/kg to 391.4p/kg with U3 heifers up 2.5p to 393.4p/kg.

With higher prices available this week for in-spec animals, the weekly average price looks set to surpass the record average of 396.5p/kg paid in June 2013 for U3 heifers.

Marts

As beef prices rise, renewed competition has been injected in to the live trade as specialist finishers and factory agents battle for limited numbers of slaughter fit and short keep cattle.

Mart managers indicate prices have strengthened with heavy stores typically up 8p to 10p/kg and sale averages for U grading lots around 230p/kg. At a kill-out of 57%, this converts to a factory price in the region of 403p/kg.

Ireland

The beef trade is also heating up south of the Irish border with prices rising 10c to 15c/kg as demand exceeds supply. Deals are widespread, with €4.40 to €4.45/kg paid for R grading steers and heifers this week.

Factoring in quality assurance premiums, R grading steers and heifers are making north of 380p/kg with U grading animals priced around 390p/kg.

In Britain, prices have bottomed out at 405p/kg for R4L animals.

However, early indications on cattle booked for next week put prices around the 410p to 415p/kg mark.

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