Beef market report: Base quote for steers squeezed down to 360c
Most of the steers being slaughtered this week are being purchased on a base quote of 360 cents/kg.
But some of the kill for Monday and Tuesday had been ‘bought forward’ last week at 365 cents/kg.
The drop in the value of sterling, as the fallout from Brexit continues to hit exports, and the seasonal strong supply of beef cattle, has weakened the bargaining power of beef finishers.
As each week passes, factory agents seem to be coming under tighter instructions not to concede more than the quoted price for cattle.
The base for heifers has slipped in line with steer prices to 370 cents/kg, although, as usual, it is slightly less of a challenge to get a few cents per kg more for the better quality heifers.
Intake at the factories has continued very strong, with the supply topping 36,200 head last week, almost half of which was made up of steers.
Cow prices are slightly weaker, at a base of 280-295 cents/kg for O/P-grade, while better quality cows are quoted for at 310-315 cents/kg, and up to 320 cents/kg is being reported as achievable.
In the beef trade in Britain, continued firm demand is reported, following a recovery in supplies in recent weeks.
R4L-grade steers averaged equivalent to 433 cent/kg (when VAT is included).
Interestingly heifers in Britain have been trading a little easier than steers, with the R3 heifer last week making a price equating to 426 cent/kg (VAT included, at around 89p sterling for the euro).
Bord Bia has reported the latest US Department of Agriculture global outlook pointing to a rise in world beef production, on the back of higher supplies in the main exporting regions, such as the US and South America.
Brazil is forecast to consolidate its position as the largest global beef exporter next year, with exports forecast to rise by 5%.
China is anticipated to increase imports by more than 15%, as beef consumption rises.
