Store cattle prices set to strengthen further

Store cattle prices strengthened further in the first three months of 2010, according to latest AHDB Meat Services figures.

A shortage of cattle and strong demand during the first quarter means prices have now been up on the previous year for the sixth year running.

Firm prime cattle prices over the past 21 months are tempting farmers to pay more for stores.

AHDB said the average price for black and white 18 month-old steers was little changed compared with a year ago at £611 per head in Q1 2010, but 18 month-old Continental-cross steers increased in value by 6% to average £792 per head. Two-year-old Continental steers were up 3% on the year to average £856 per head.

“The shortage of store cattle was also evident with heifers resulting in higher prices at auction. 18-month old Hereford-cross heifers averaged £513 per head in the first quarter of 2010, four per cent up on year earlier levels. Continental-cross heifers of the same age increased in value by eight per cent year on year to average £706.”

Prices for two year-old Continental heifers increased by 4% to average £745 per head.