Beef prices up and supply unlikely to recover soon
Base prices quoted by processors have increased by 5-8 cents/kg for both steers and heifers, after the intake slipped to 5,000 head less than the same week in 2014, and farmers toughened their stance on price before agreeing to sell their finished animals.
Steers are being generally quoted at a base of 415 cents/kg, with some cattle farmers holding out for a few cents/kg over this week.
The base for heifers is generally at a premium of 10 cents/kg more than steer prices, with most of the processors offering 425 cents/kg, and some deals being negotiated for a few cents/kg above that for better quality heifers, where supplies are tight.
The Irish beef plant intake last week dropped to around 27,680 head, a drop of almost 2,000 head from the previous week. That has encouraged cattle farmers to believe that the overhang in cattle supplies, which hit prices over the past year, has come to an end, with the weekly kill now slipping to almost 5,000 head less than a year ago.
The tightening supply has been the key to recovery in cattle prices — as it should be, in a properly functioning market.
It has taken longer than expected to get the weekly intake significantly under 30,000 head.
An increase in supply is now unlikely to emerge for some weeks, until cattle come off grass, which may be later than usual, due to the poor May weather conditions.
Cow prices at the factories are unchanged, at a base range of 355-370 cents/kg in general for O/P-grades.
Up to 385 cents/kg, or a few cents more for quality lots, is being offered for R-grade cows.
The price in Britain for R4L-grade steers is equivalent to 491 cent/kg (including Vat).
The trade is reported to be relatively steady, despite some ease in demand and a rise in supplies.
In France there has been little change, with promotions centred on chucks and diced beef. Likewise in Italy, with the trade remaining slow on the back of sluggish demand.
