Beef prices continue to decline
In general, prices have been cut by a further 3c/kg (1p/lb) across the board. The factories maintained their silence on quoting for cattle - the supply of which exceeded demand at the factories yesterday - which acted to diffuse any resistance by producers to accept the lower prices being offered by the processors. Most reported they were booked up for this week at least - supply aided by the heavy weekend rain - and were not quoting for that reason.
Most factories were buying cattle yesterday at 255c-243c/kg (91p/87p/lb) for R/O grades as they moved closer to their target of buying R grade cattle at 90p/lb and paying 85p-86p/lb for O grade animals.
With prices continuing to fall and more cattle reaching 30 months during September, corresponding with the peak calving period of March, the trade became a buyer’s market yesterday. Supplies were reported to be very strong at all of the factories with some claiming that the first signs of “crazy” selling by producers were emerging with forward bookings into early October - without any price being set - sought by some producers.
Normally, factories expect to experience a drop in supplies this week due to the Listowel Races and can have another light kill as farmers flock to the National Ploughing Championships next week, but there is no such indication for this year judging by the increased anxiety of producers to sell yesterday.
