Beef market report: Weather effect steadies the autumn beef market

There are increasing grounds for quiet optimism among beef producers that the decline in prices at factories has bottomed out.

Superb October weather has been a big factor in ‘control’ of the outflow of cattle from farms to factories for the month so far, and thankfully, weather prospects for the coming days remains positive.

Intake at the factories has continued at stable levels.

There is no pressure on finishers to sell, with ground conditions superb on most farms, and grass growth excellent for the season.

Hopefully, that situation will continue — the longer the better.

It would be over-optimistic to believe that the weekly intake of just over 31,000 head delivered to the factories last week will continue at that level over the remaining weeks of the year.

Expected supplies to the year-end would suggest that it will be difficult to hold the average intake at the current level.

However, compared to 2014, the weekly intake is expected to average 2,500 head lower.

Quoted prices for steers remains generally at 385 cents/kg.

The indications are that more ‘deals’ at up to 390 cents/kg are possible this week, and some farmers are trying hard negotiations to get a few cents more.

Heifer prices are at a premium of 10 cents/kg over steer prices, with this pattern consistent across the market.

Some sellers are getting 400 cents/kg, and a few claim to have secured just over that for better quality lots of heifers.

There is not much change in prices being offered for cows.

The base being quoted for O/P-grade cows is 325-345 cents/kg, while up to 365 cents/kg is general for better quality R-grade cows.

In Britain, the average prices for R4L-grade steers is equivalent to 516 cent/kg (incluiding VAT).

The beef trade in Britain is reported to have eased slightly over the past week, and is generally described as sluggish.

Demand for steaks is seasonally slow, and is not expected to pick up until near the end of the year, while trade is reported as best for forequarters, helped by reduced supply.

In France, the beef trade is reported as continuing slow this week with no improvement expected in the short term. In Italy, the market has been affected by the bluetongue outbreak in France, with lower supplies reported.