July price trend was unique in the beef trade
Some processors have eased this week’s prices quoted for cattle by as much as 5 cent/kg (2p/lb), but are finding it increasingly difficult to get sufficient cattle without paying last week’s going rates.
Most processors are finding they must pay 360 to 365 cents/kg (128p to 130p/lb) as a base price for steers, and there are some reports of 5 to 8 cent/kg (2p to 3p/lb) more being negotiated by sellers of better quality animals. Reports from around the country indicate that factory agents are under instructions not to pay over the quoted prices for cattle, but there are counter reports of flat pricing to secure stock.
In general, heifer prices are hovering closer to the steer prices this week, with base quotes for the heifers ranging from 360 to 370 cents/kg (128p to 132p/lb). The margin seems similar in the actual prices being paid for the heifers, generally commanding 5 cents/kg (2p/lb) more than steers across the range. The heifer top-up has slipped by at least 3 cents/kg (1p/lb).
The tightness of the cattle supply is keeping processors under pressure. The estimated kill for last week was about 26,700 head, which reflected the usual Galway Races effect on intake. And with grass in plentiful supply, and prices holding strong, farmers in general are in no rush to dispose of cattle, making it harder than usual for processors to boost the supply.
All indications point to the supply of beef cattle remaining tight for the rest of the year. Some sources in the processing sector are laying the blame for slack supplies on the QPS grid.
Nobody in the trade can recall the last time there was consistent improvement in beef cattle prices during July.
The cow trade is holding firm. Base prices for O and P grade cows range from 290 to 310 cents/kg (103p to 107p/lb), and the heavier, quality cows likely to make R grade are continuing to meet with strong demand at up to 325 cents/kg (116p/lb).
