Seller’s market remains for good cattle
Most factories were yesterday quoting the same for cattle as last week, with a little more to be got in the midlands, and in the south-east the first hint of attempts to pull back by a couple of cents/kg.
In general 280 cents/kg (100p/lb) is available for R grade animals, with the exception of fat score 5, and they are making 286 cents/kg (102p/lb) up country.#
The O grade animals are worth 280 cents/kg (100p/lb) in the midlands, but it is harder to get this return in the south where supplies are stronger.
Cattle supplies to the factories are still hovering around 65% of the throughput for the same weeks in 2004.
Last week, bullock supplies were up around 25% on the previous week to a kill of around 12,500 head, compared to 15,670 head the same week in 2004. The total kill for last week topped 27,000 head. The same week last year the kill was 34,682 head. However, since the factories conceded to producers’ demands for a base price of 280 cents/kg (100p/lb), supply has been steadily increasing.
Given a continuing rise in the kill over the past two weeks, parity with the weekly kill in 2004 will be reached by the middle of this month. Producers hope the increase will not affect the balance between supply and price.
