One of the more unusual trends, which has been evident in 2019, has been a widening in the differential in prices paid for the top third and bottom third of weanlings when compared with store cattle. In previous years, we saw farmers move more and more towards buying better-quality cattle in order to ensure they are easier sold as stores and to attain the best grades possible at the factory at finishing.

In the case of weanlings, we saw the differential increase sharply between the top and bottom third in quality terms. In light heifers under 300kg, the price differential was €1.01/kg, or €253/head for 250kg. The differential was even more pronounced for heavier heifers at €1.01/kg or €354/head between the top and bottom third of weanlings.

Light weanling bulls under 300kg saw the differential rise to €1.09/kg or €273/head for 250kg. The differential for heavier bulls from 300kg to 400kg stood at 89c/kg or €312/head for 350kg.

Differential of €336/head between top- and bottom-quality steers

While the difference in price paid for the top third and bottom third of store cattle is much less on a price-per-kilo basis, if we look on a price-per-head basis, there is a €336/head differential between the average price paid for the top third and bottom third of steers from 500kg to 600kg.

The differential for lighter store bullocks from 400kg to 500kg stands at 70c/kg or €315/head. The difference between the top and bottom third of heifers was not as large, but this is due to less dairy influence in store heifers. Heifers from 400kg to 500kg saw a differential of €297/head.

Summer crash for mart prices

The MartWatch price review takes the first half of the year and compares the average prices paid for various types of livestock in that period to the same period in the past five years. What these figures hide is the weekly prices changes and trends which have taken place in the past few months.

The figure below details the weekly price paid for the average 500kg to 600kg steer from January to the end of June.

If we pay close attention to the graph, we can see that prices fell sharply from early May onwards. While prices normally fall slightly during the summer when numbers traded through marts are low and when demand is low, the summer of 2019 saw a much sharper fall. In 2017 and 2018, prices peaked in March and gradually dropped off from mid-June. This year, we saw prices fall by about 25c/kg from peak in early February to July.

We must also remember that during the summer of 2018, the country was in the middle of the most prolonged drought in years, which had a significant negative effect on live cattle prices as demand was on the floor.

Brexit and beef price uncertainty wiped up to €100/head off the price of heavy store cattle during June and July when compared with the same time in 2018. The most resilient stock traded in marts are cull cows, with plainer-quality light Friesian stores feeling the majority of the prices pain.

Analysis of MartWatch figures shows that over June and July of this year, heavy bullock and heifer prices for those over 500kg were €66/head to €99/head behind the same period in 2018, when the drought was in full swing.

Bearing this in mind, when we compare the figures with the same period in 2017, bullocks and heifers over 500kg are down in price by more than €110/head in 2019. When we look at lighter store bullocks, prices are back by €40 to €55/head on last year and as much as €80 to €95/head on 2017 levels. The weanling trade, although not suffering quite as severe a hit, has seen prices running up to €30/head lower than last year and by €73 to €77/head lower than in June and July 2017.

Lowest prices since 2014

Figure 1 shows the average price paid for a 300kg weanling heifer, 350kg weanling bull, 550kg steer and 500kg heifer in the first half of 2019 compared with each of the last five years.

Our analysis shows that the prices paid in the first half of this year were lower than any of the last five years and just marginally ahead of 2014, which was a very poor year for mart prices.

Over the first half of 2019, the average 300kg weanling heifer sold for €710/head, back by €3/head on last year and €68/head when prices peaked in 2015. The average 350kg weanling bull sold for €792/head in the first half of this year, back by €36/head on last year.

A similar trend is evident in store bullocks and heifers with the average 550kg bullock back by €55/head on last year and the average 500kg heifer back by €30/head.

Prices back €50/head on the five-year average

Table 1 details the prices paid in 2019 compared the average price paid for the various cattle types over the last five years. Heifers from 400kg to 500kg sold for €2.17/kg in the first half of 2019, back by over 11c/kg on the five-year average or over €52/head. Weanling heifer prices were not affected to the same extent. In 2019, the average 350kg heifer sold for €2.37/kg, back by 7.6c/kg or almost €27/head on the average price paid over the past five years.

Weanling bulls felt a little more pain than heifers. The average 350kg bull sold for €2.26/kg on average in the first half of 2019. This was back by over 12c/kg on the average prices paid in the past five years. On a price-per-head basis, they were down by €42/head on the five-year average. Light store bullocks were affected even more than lighter bulls on a price-per-head basis with prices back by €49/head on the five-year average.

Heavy stores over 500kg sold for €2.10/kg on average in the first half of 2019, 8.5c/kg or €47/head behind the average of the last five years.

Tables