Processors very cautious about quoting forward for cattle

The beef trade has been hit by Covid 19, in one of the most unpredictable market situations for some time, across the world.

The closure of McDonalds restaurants in Ireland and the UK (Supermacs, Subway, Nando’s, Krispy Kreme and Starbucks are among others to close in Ireland this week) is serious for the beef sector.

It was inevitable that there would be an impact for cattle finishers.

The result was an immediate general price cut of 5c/kg for steers and heifers at the factories.

It is difficult to get a base price quote above 360c/kg for steers anywhere in the country this week.

Some processors are reported to have hinted to finishers there will be a base of 355c for steers before the end of this week.

Prices for heifers weathered the storm slightly better, with a general base of 365c, and some sales reported at a base of 370c/kg.

But as pressure on the market intensifies, heifer prices may come under the same pressure as steer prices.

Processors are left relying on the supermarket trade, and home cooking consumers, after catering closures.

They were very cautious this week about quoting forward for cattle.

As processors assessed the situation, with orders for beef reduced or cancelled almost daily, they were not inclined to give finishers any assurance on prices for more than a day or two ahead.

Prices for young bulls are running at around 10c behind steer prices.

Having tightened over the previous two weeks, cow prices steadied this week.

Up to 300c/kg is achieveable for O-grade cows, P-graders range from 260c for plainer types to 280c-290c/kg for better quality lots.

The intake at factories last week was 37,898 head, more than 2,000 head higher than the same week last year.

All categories were up on last year, with the exception of young bulls, down by 1,600 head, at 2,698 for last week.