Mart quotes lag behind rise in factory beef prices

A slight increase in the prices being paid by the factories for cattle is not reflected in the quoted prices, which remained unchanged at the plants for this week.

The average for steers increased by 1.5 cents/kg, and by 2 cents/kg for heifers in last week’s kill.

The drop in the kill for the week of the October bank holiday was partly recovered last week, but the belief in the trade is that the intake over the coming weeks is only set for further tightening.

The factories are offering producers 385-390 cents/kg (137p-139p/lb) as a base for the steers this week.

There are few producers parting with steers for less than 390 cents/kg, and many are reporting up to 5 cents/kg more being paid by factory agents, who are finding it harder to get stock this week.

However, the situation appears to be that hard dealing may be necessary to get the extra over 390 cents/kg, with the processors determined to stall any upward spiral.

Quoted prices for heifers are running at a premium of 10-15 cents/kg over the steers, with heifers making 405 cents/kg (144p/lb), but it is difficult to get more unless for good quality stock.

The intake last week was just over 31,100-head, an increase of around 2,000 on the previous, short working week, but, to keep it in context, 3,000-head less than for the corresponding week in 2011.

Given the general trend, year to date, the processors are expecting supplies to tighten further over the coming weeks.

There are few animals left on the land and, once they are housed, it will be harder to get them moving again, unless there is a price boost for the peak pre-Christmas trade.

There has been very little change in the UK trade over the past week.

Demand for forequarter product continued steady, while, in a bid to boost demand levels, promotional activity has been evident for topsides and silversides.

Prices for R4L grade steers are Stg 356.4 pence/kg, which is equivalent to 469 cent/kg (167p/lb) and is up to 80 cents/kg more than the Irish price or a massive €280/head producers.

On the Continent, trade across most of the key markets was solid, with prices reflecting this pattern.

Best demand reported is for forequarter cuts, like featherblades and chucks. Demand for some fifth-quarter cuts remains strong.

Lift in demand for hindquarter cuts, such as fillets, is expected to improve over the coming weeks, as consumers continue to stock-up in advance of Christmas.

Similar to the prime beef, the cow trade is also unchanged for this week, at base prices quoted for O/P grade cows, ranging 300-340 cents/kg and making 320-340 cents/kg.

The better-quality cows continue to be in demand, at up to 350-355 cents/kg.