Rising demand meets tight supply

THE hardening of prices for under age cattle continued at the factories this week, as supplies tightened further, putting some pressure on the factories to get sufficient cattle to meet requirements.

Quoted prices for the week were improved by at least 3 cent/kg (1p/lb), with the balance of supply and demand in favour of the farmers, resulting in more deals above the quoted prices being negotiated with the processors.

Factories across the south quoted 241 cents/kg (86p/lb) for R grades this week, but in reality, most of the factories were finding that they had to pay more to get sufficient cattle, as their first orders for the Christmas trade were coming on stream.