Steady supply keeps beef prices stable at marts
They have quoted unchanged prices for steers and heifers this week, while some have increased the prices being offered for the cows by a few cents/kg, for the heavier cows in particular.
The base price being quoted for steers is is unchanged at 415-420 cents/kg. Actual prices being paid are spread across the range fairly evenly, depending on local factors such as a processor’s necessity to get stock, and their availability.
The same stability is the order of the week for heifers, at a premium of 10 cents/kg over steer prices across the range of 425-430 cents/kg. The only difference is that some farmers are successfully negotiating a few cents extra for better quality heifers, which is not generally available for steers.
Now that the pressure of fearing further farmer wrath at last week’s Beef Forum has lifted — although little was delivered at the meeting — it is not unexpected that processors would at least try to stall the upward price trend of recent weeks.
The aim appears to be to hold prices at current levels over the coming weeks, and any further strengthening in the supply of cattle available to the factories will help the processors achieve that objective.
Last week, intake increased by 1,000 head to around 32,650, which is also around 1,200 more than for the same week in 2014.
While the markets are strong for beef, and processors are keenly interested in getting a good flow of stock, the supply at that level has eased the pressure and somewhat weakened the hand of farmers to force a continuation of the upward price pattern.
For the time being, it has also dashed the expectation of tighter supply becoming the driver of the trade for the spring. It remains to be seen if supply tightens as the weeks progress.
There has been some strengthening in cow prices being paid around the country this week. Quoted base prices remain unchanged at 330-360 cents/kg for O/P-grades, and up to 375-380 cents/kg on offer for good quality Rs, but the vibes from around the country are that the average price being paid has improved by a few cents/kg.
In Britain, prices have firmed, with R4L-grade steers averaging equivalent to 527 cent/kg (including Vat). Trade was reported as relatively steady last week. Demand eased off somewhat for round cuts, but forequarter cuts were still performing well alongside minced and diced beef.
In France, the beef trade remained steady. However, there has been some increase in competition from competitively priced continental beef. Promotions are taking place on steak cuts and roasting joints.
