Weather will be critical test of steady market

Beef prices have at least been maintained, and in some cases show improvement, this week.

The supply of cattle to the factories continues at just over 30,000 head.

However, any change in the weather will affect the superb ground conditions on farms and likely lead to an increase in the flow of stock to the processing plants.

After three weeks of the driest October weather in decades, Met Eireann are forecasting the beginning of a change by the week-end.

Steer base price quotes remain at 385-390 cents/kg.

While some of the southern factories were trying to buy at 380 cents/kg last week, very few steers are going through at less than 385 cents/kg, and some finishers say deals at 390 cents/kg are a shade easier to secure this week.

The heifer prices continue at a premium of 10 cents/kg over steer prices, ranging 395-400 cents/kg.

Getting above that takes a bit more effort on the part of the seller.

The supply last week was just short of 30,300 head, which is more than 5,000 behind the same week last year.

One has, nevertheless, to cautious about getting over-confident about this relatively low supply driving the trade for the coming week, because the available supply statistics point towards a higher weekly average.

With an increase in the supply almost inevitable, the weather will be the critical market test to determine when it materialises.

Cow prices are also holding steady at 325-34 cents/kg for O/P-grade, and up to 365 cents/kg for the Rs.

In Britain, there has been an easing in the average prices for R4L-grade steers, back by 3p/kg to the equivalent of 515 cent/kg (including VAT). The trade eased slightly last week, with demand being described as sluggish, particularly for steaks.

However, it is hoped that demand will rise for forequarter and high value cuts with the onset of winter.

In France, the market also remained difficult, with little or no retail promotion.

In Italy, the market continued to be affected by the bluetongue outbreak in France, with reduced throughput at meat plants. Demand is strongest for beef from Charolais and Limousin breeds.