More cattle purchased in flat price deals

BEEF cattle prices continue to harden at factories this week, as tight supplies maintain pressure on processors to source sufficient stock to meet their requirements.

Although there was a slight increase in the intake at the factories last week, as cattle remaining on the land were shipped out following heavy rain, the increase didn’t even dampen the upward trend in prices.

Base prices for steers at factories for this week have increased by at least 5 cent/kg (2p/lb). Processors quote 364 cent/kg (130p/lb) as a base for the steers, and generally pay a base range of 365 to 370 cent/kg (130p-132p/lb) to get cattle. However, the base price has become less relevant, with an increasing percentage of cattle being purchased in flat price deals.