Beef price fall may be steadying

As the physiological benchmark of 90p/lb for R grade animals was breached by beef factories across the country yesterday, the bottoming out of the worst price crash in years is now believed to be close.

The factories continued to be flooded with cattle yesterday. The panic selling by producers continued after a further cut of 6 cents/kg (2p/lb) by the processors brought the general run of prices for R/O grade stock to 246-235 c/kg (88p-84p/lb) although some factories were quoting O grade animals down to 232 c/kg (83p/lb) and maintaining the supply had not been effected.

The level of bookings at the factories is showing no sign of any resistance from producers who have been shocked into selling, regardless of price, as they watched the value of their stock decline by the week. On the positive side, there is now emerging consensus in the trade that the price crash is close to bottoming out. A further reduction next week cannot be ruled out, but that could set the base for a more stable trade.