Prices looking up

THE first signs of the downward pressure on beef prices bottoming out — at least for the short term — have been emerging this week with indications that some of the factories have been paying a little more to get sufficient cattle.

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.