Competition spurs higher beef prices

SCARCITY is delivering stronger prices to producers for beef as competition between processors for the low supply of finished cattle available further increased the return to the suppliers this week.

Pushed by a very tight supply of cattle, the factories increased their quotes by up to 6 cents/kg (2p/lb) on Monday, but the quoted prices are of lesser relevance as the prices being paid by the factories continues to rise above the base line quotes. Most of the factories quoted 260-252 cents/kg (93p-90p/lb) for R/O grade animals, an increase of 3 cents/kg (1p/lb) for R grade while O grade improved by 6 cents/kg (2p/lb).

The actual buying price for cattle this week has been closer to 266 cents/kg (95p/lb) for R grade in direct deals with the factories, with some producers securing 93p-94p/lb flat price for lots of cattle with a high percentage of R’s.