Prices looking up
The efforts by the processors to pull prices has not been very successful, with any measure of reduction over the past month limited to a minor downward adjustment overall.
What the downward pressure exercise succeeded in doing was to restrict further heating in the market, which was probably the objective of the factories, being well aware that it was going to be very difficult to get prices down in May-June with markets remaining strong and supplies tightening. The tightening in the supply of cattle is playing factor in the trade this week. The supply of steers is back to around 12,000 head/week.
While some of the factories appear happy enough with intake others are beginning to get more anxious about cattle and having to work a little harder to get sufficient stock. Some of the lower quotes edged up by 3 cents/kg (1p/lb) this week. While generally quoted prices are unchanged, the word around the country is some factory agents are more anxious for cattle and willing to do improved deals with producers to get stock.
In the south R grade prices are ranging 302-305 cents/kg (108p-109p/lb) with the higher end more attainable for heifers. In the midlands they are worth up to 3 cents/kg (1p/lb) more for quality stock, a price that can be topped a little more in the north west of the country. Prices for O grade are generally ranging 297 cents/kg (106p/lb) to 302 cents/kg (108p/lb).
There are reports that flat deals have been secured this week at 302 — 305 cents/kg (108-109p/lb) for good mixes of mostly R with a few O’s included. The warm weather usually results in a drop in volume sales for beef, but the markets are very steady, and with grass cattle a few weeks away, some price gains over the next few weeks is a reasonable bet.
Trade for cows is weaker with prices having edged back by 3-6 cents/kg (1p-2p/lb). Base prices are ranging 235 — 246 cents/kg (84p-88p/lb) with 257 — 263 cents/kg (92p-94p/lb) being negotiated for quality R grade cows. The cow trade has weakened overall.
