Beef market report: Effect of tough beef market hits mart trade
The quoted base price for steers is unchanged at 360 cents/kg, but it is much harder this week to get above the base, even for the hardest bargainers.
Processors are more determined than ever not to concede extra by way of a ‘top up’ on the base, except in rare circumstances.
The heifer price is continuing at a premium of 10 cents/kg over steer prices, with a base of 370 cents/kg the going offer this week, and as for the steers, very little over the base is being paid for any stock.
More of the kill is now in the over 30-months category which costs farmers the 12 cents/kg quality assurance bonus, even if the animal meets all the other quality criteria.
The benefits from fine October weather conditions for beef finishers are now being wiped out by the cuts in prices at the factories, which are also being reflected now at the mart sales, with finishers tightening up what they are prepared to pay for their replacement stock.
Cow prices are also unchanged, with O/P-grade cows ranging from 280 to 295 cents/kg, with up to 315 cents/kg on offer for Rs.
The supply to beef export plants last week slipped by almost 2,000 head, to around 34,300, and the Bank Holiday on Monday last will likely have reduced the intake for this week by a further 1,000 head.
Is the supply showing signs of easing, or is this no more than a temporary hold by beef finishers, in reaction to the lower prices? It is a case of wait and see, to find out.
The beef trade in the UK has been described as stagnant, with demand staying firm, and prices relatively unchanged.
The number of cattle processed in recent weeks was up marginally.
Demand for most cuts is reported to be steady, while retail prices are showing some decline compared to the same period last year.
Prices for R4L-grade steers last week averaged equivalent to 432 cent/kg (if VAT is included).
In France, the beef trade remains poor for imported product, with domestic product dominating the market.
Demand for most cuts is steady, with the highest demand showing for offal.
Retail promotions have been centred mainly on domestically produced product such as steaks, ribs, burgers and mince, with some offal promotions taking place on imported product.
In Italy, the beef market remains steady with little change reported in wholesale prices while some decrease in retail prices was reported.
Globally Argentina has resumed beef trading to Canada after a 15-year absence, while cold storage beef volumes in the US have shown a rise of over 4% for January to September 2016, compared to the same period last year.
