THE National Beef Association says buyers of short-keep store cattle must work out whether prices being paid are too high.
It warns that a much higher number of finished cattle than usual are likely to be presented over November-December, because many feeders will claim £54 slaughter premium while it is available, instead of carrying as many suitable cattle as possible over into the new year.
"If this happens, it will push a temporary overload on to an already well-supplied market," explained the NBA's chief executive, Robert Forster.
"But some of the impact could be avoided if finishers split their deliveries and, instead of concentrating on putting through as many last-minute SP claims as possible, decided to hold some cattle over because short supplies in January-February are expected to push slaughter prices up to levels that will more than compensate for its loss."
However, even though the prospect of better total returns after the new year ought to persuade feeders to spread their finished cattle sales evenly over the October-March period, the NBA still expects many finishers to take a bird in the hand approach and claim as much SP as they can before 2004 ends.
"It is this that persuades us that short-keep store buyers ought to take the prospect of easier market prices over October-December into account when they next visit the ringside," said Mr Forster.
He reminded buyers of the two-month retention requirement on slaughter premium, and warned that full second BSP claims could be made only on bullocks born after April 30, and before June 30, 2003, if the retention period was deferred into 2004.
On addition, only male cattle born before July this year could qualify for a first BSP claim, provided the application was made as soon as the calf was five months old and the retention period was deferred.
The BSP scaleback was also likely to be much higher for 2004.
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