Greater supply does not affect prices

BEEF prices are continuing very firm this week, against a background of increasing supplies raising concerns that further increase in the supply could de-stabilise the current price base.

Peak prices were fully maintained by the processors for the first half of the week, but a mid week review was being planned by some of the factories and the expectations were that the objective was to measure supply against requirement, with a revision of the price likely.

The R grade steers are making 355-364 cent/kg (127-130p/lb) with some of the southern factories not as anxious to pay at the higher levels this week, claiming that supplies are not as tight. Prices for O grade steers range 342-358 cents/kg (122-128p/lb).