Beef market report: Price cut as 30-month deadline boosts supplies
Most have reduced the quoted base price for steers to 365 cents/kg.
While there are some reports of cattle farmers securing deals of up to 370 cents/kg as a base, it is not generally available, and the agents can bargain hard, with supply flowing strongly.
The heifer price has slipped by a similar amount, to a general base of 375 cents/kg.
That said, it appears that a higher percentage of farmers are securing deals for up to 5 cents/kg more.
The continued deterioration in the weather is forcing more stock off the land, either to the factories or cattle yards, and easing any pressure on the processors to get sufficient stock to meet market requirements.
The intake last week reduced only slightly, to just under under 36,000 head.
While the supply of steers increased, the intake of other cattle was slightly down from the previous week.
Over the coming days, animals born in late April, 2014, will be reaching 30 months, and avoiding the penalty for them going “over-age” will encourage movement of factory fit stock, which should mean the intake at factories holding up.
There is very little change in the prices on offer for cows.
The quoted prices range from 280 cents/kg base for P-grade to around 205-210 cents/kg for Os, and up to 320 cents/kg for Rs.
It is into the realms of the usual guessing game as to the likely average supply forward for the remaining weeks of the season up to Christmas.
The total supply to the factories year to date is up 51,000 head.
Most of the increase is accounted for by young bulls, which increased by 34,000, and an additional 20,000 cows, while steers are lower by 2,000, so far, and there are only small changes in the other categories.
Earlier predictions of up to 80,000 extra stock in the system were adjusted downwards, and the guessing game as to what the final outcome will be continues.
In Britain, the beef trade eased last week, following months of upward movement, with the weaker sterling affecting confidence in the market.
Overall demand has slowed down, but is expected to seasonally show some recovery in the coming weeks.
Prices for R4L-grade steers averaged equivalent to 427 cent/kg (including VAT), at 90-91p sterling to the euro.
Little change has been reported in the beef market across the continent.
On global markets, beef production in Argentina is back almost 6% from January to September 2016, compared to the same period last year, due to reduced cattle numbers.
In Uruguay, exports for this year to September have shown a rise of around 8% year-on-year, with China, US, Israel and Canada the main markets.
