Lowest year-to-date factory cattle prices

Beef prices came under pressure again at the factories this week, with the quoted prices dropping to their lowest level for the year to date.

Supplies of cattle are continuing to edge upwards slowly, which is the normal October pattern, but the weekly intake remains around 15% behind 2011, with at least 5,000 head less per week going through the gates at the factories, compared to 12 months ago.

While the lower supply should keep some pressure on the processors, and strengthen the hand of farmers holding out against price cuts, the quoted prices for this week have been reduced by at least 5 cent/kg (2p/lb). Some processors have reduced base quotes for steers to 375 cent/kg (134p/lb), with the general range at 375-385 cent/kg. In addition, processors are trying very hard this week to get cattle at the quoted prices — and no more — with the general run of sales within the 380-385 cent/kg range.