Cattle supply increase puts damper on Christmas trade
Intake at the plants hit 33,200 head last week, the highest weekly kill to date in 2015, and coming to within a few thousand head of the peak throughput of last autumn.
Excellent weather in October, favourable ground conditions on farms, and a flush of grass, seem to have delayed the autumn peak supply which is only now coming through to factories.
The weekly supply during October and November fell short of the volume of supply which statistical information indicated was available.
Some cattle farmers may have mistakenly believed it would continue, and that a strong pre-Christmas trade would result.
Instead, an upward trend in supply has undermined any prospect of price improvement.
Quoted base prices for the week are at best stable at 390 cents/kg for steers and 400 cents/kg for the heifers.
Small quantities of both steers and heifers are reported to be making a few cents/kg more in deals between some farmers and processors, but such opportunities are dwindling with the lift in supply.
The increase in supply looks like a perfect opportunity for processors to control the pre-Christmas trade, but bad news for any farmers who held back cattle in anticipation of improved prices in the remaining weeks of the year.
The trade for cows remains weak.
The base price range for O/P-grade is 300-325 cents/kg.
R-grades are making up to 335 cents/kg.
In Britain, the average prices for R4L-grade steers remained relatively stable over the past week, equivalent to 534 cent/kg (including VAT).
The trade has eased, particularly for striploins and ribs.
Demand is holding best for diced beef and round cuts; it is hoped that this demand will pick up further in the run-up to Christmas.
In France, demand has eased, particularly at food service level, with fewer people eating out.
Trade has eased for thick skirts and flank steaks.
However demand has risen for cuts such as beef cheeks, due to colder weather.
In Italy, the trade is reported to have slowed.
It is hoped that wholesale promotions focusing on boosting retail sales as the festive season approaches will help the market.
Meanwhile, the live trade between Italy and France has returned to more normal levels.
