Intake drops but no price move at factories

Cattle supplies to the factories continued to tighten this week, putting increasing pressure on processors to get sufficient throughput, following a further drop in intake over the past week.

Despite the reduced supply, quoted prices for this week at the plants are unchanged, in an early indication from the processors that they may be preparing for a tougher policy on prices going forward, sending a message to cattle farmers that market conditions do not justify higher prices being paid presently for cattle.

Steer base prices are quoted at 395-400 cent/kg (141p-143p/lb) generally in the southern counties, and up to 405 cent/kg (145p/lb) elsewhere. The heifer base prices are being quoted at 5-10 cent/kg over the steer prices.