Base price generally at 360c per kg for steers and heifers this week

Beef market report

At Macroom Mart last Saturday, this Simmental heifer born January 2019 weighed 455kg and sold for €810.

Finishers and processors continued to hold their ground on prices, in the beef trade at factories this week.

Weather continues to be an issue for finishers, particularly in heavy soil areas where stocking levels have to be reduced as ground conditions deteriorate.

But there is no indication of this causing an oversupply at the factories, where processors need up to 34,000 head per week to comfortably supply the market demands.

Prices eased and then stabilised, with more pressure on prices for heifers, which are now at parity with steer prices in most areas of the country.

The base of 360 cents/kg appears to be applied to both steers and heifers generally this week.

There are some reports of finishers with better quality heifers negotiating for an extra 5 cents/kg to bring their base to 365 cents/kg.

Little Give

But, in steer prices, there is very little give by processors.

A lot will depend on how intakes move over the coming weeks. Unless intakes increase due to bad weather forcing finishers to sell cattle, any moves by processors to cut the base price for steers is certain to meet with a lot of resistance.

While the overall intake at the factories year to date is now on par with the same period in 2019, there are wide variations within the categories.

The intake of young bulls is down by more than 55,000 head. Most likely some of the suppliers of young bulls in 2019 switched to finishing steers this year, which can account for the increase of 42,000 head in the steer supply. The supply of heifers is not far off par with 2019, at around 1,000 head more this year, and the cow intake has slipped by 7,000 head compared to last year.

R-grade young bulls are trading at 350 cents/kg for a good percentage this week, while up to 355 cents/kg is being paid, and 340-345 cents/kg generally for O grade.

There is some widening in the cow price spread from region to region, particularly for better quality cows.

Finishers have reported deals at up to 330 cents/kg secured for R-grade cows, which in general are in a 310-320 cents/kg price range.

O-grade cows are making 290-300 cents/kg, and P-grade are on 280-285 cents/kg.

The beef cattle intake increased further last week, to 36,326 head, including a strong kill of steers, at 17,231 (the highest per week, year to date), and 9,815 heifers. Cows accounted for 7,300 head, with only 1,264 young bulls.