Unprecedented supply trend surprises sellers

Beef prices quoted at factories remained stable this week, with higher than expected supplies — somewhat unprecedented for a weekly December intake to reach such a peak, and a major surprise for farmers who had targeted the pre-Christmas period to deliver better prices due to anticipated scarcity of cattle.

Last week’s intake at factories topped 33,230 head. This eased pressure on processors, in a buyers’ market. The supply exceeded the same week in 2011 by about 1,900 head, in sharp contrast to the pattern year-to-date of weekly supply trailing last year.

Quoted steer prices for this week remain at a base of 395-400c/kg (141p-143p/lb). Some farmers are reporting up to 405c/kg being paid, but a considerable percentage of the cattle in the south continue to be sold for 395-397c/kg with processors resisting pressure to pay more, and being assisted by the supply pattern.