Beef prices unchanged despite supply increase to factories
The base price quoted for steers this week continued at 385-390 cents/kg, with most of the steers making 390 cents/kg, and some finishers managing to negotiate a few cents more, although it is not being conceded easily by processors, who are under less pressure now to get supplies.
Heifer prices continue at a premium of 10 cents/kg over steer prices, on the 395-400 cents/kg range on offer.
Similar to the steers, most of the heifers are making at least 400 cents/kg, and some lots are making a few cents extra.
The supply last week hit 32,000 head, broadly similar to the previous week, but showing an increase of 2,000 compared to a couple of weeks ago.
Heavy rainfall, leading to a sharp deterioration in ground conditions on farms, has ended the opportunity to hold stock on pasture, after the “bonus” weather throughout October.
The inevitable result has been an increase in supply to the factories, which is likely to continue for the next few weeks at least, easing any pressure on processors to pay higher prices for stock in the lead-in to the pre-Christmas trade, which has frequently been a good period for sellers with finished stock, but only if the supply is scarce overall.
Even after taking into consideration the expected reduction in supply for 2015, the intake over recent weeks has been on the low side, leading to the conclusion that the drop in numbers is greater than predicted, or more cattle remain unsold on farms.
Cow prices at the factories continue to tighten.
The base for O/P-grade cows is 305-335 cents/kg, with up to 340-345 cents/kg for the better quality Rs.
In Britain, the average prices for R4L-grade steers have eased to on average equivalent to 530 cent/kg (including VAT). The trade is reported to be slow, particularly for steaks, but better for forequarter product, particularly for diced beef.
In France, the beef trade remains sluggish, with little indication of an upturn until the festive period. Retail promotions are centred on domestically produced striploins.
In Italy, a stable trade was reported last week despite some ease in throughputs.
The live cattle trade between France and Italy has been on the rise since the lifting of a movement ban on French cattle affected by bluetongue.
