No pre-Christmas cheer for beef finishers as processors cut prices

Beef market report

At Macroom Mart last Saturday, this Charolais weanling bull born February 2020, weighed 305kg and sold for €680.

Change in beef prices for prime cattle at factories this week went in the wrong direction from the point of view of finishers.

Within the next fortnight, the cattle to supply the Christmas market will be in the factories.

The hit which cow prices took over the past few weeks did not auger well for finisher expectations of an increase in the price for pre-Christmas supplies to the factories.

So it’s not a complete surprise to now find several processors trying their hand at reducing the heifer price as much as 5c/kg, by offering a base price of only 360c/kg.

Despite the likely pre-Christmas demand lift, it is very hard to find any encouragement for finishers of beef cattle in the current trade.

The processors are taking a gamble that deterioration in the weather, and in ground conditions, will force the sale of heifers not housed and still on the land.

However, the reports from around the country indicate resistance by heifer finishers, holding out for a base price of 365c/kg, but it is not as readily available as in past weeks.

The intake for last week was 38,629 head, one of the highest of the season, and on a par with the same week last year. Steers accounted for 15,559 head, which was slightly back on 2019, but heifers were strong at 11,365 head which was up by 1,300 head. Young bulls remained at 2,061, while there was also a strong supply of cows, at 8,927 head

Prices for steers continue at a base of 365c/kg, and finishers trying a hard sell to get above that price are meeting stone-wall resistance.

Moreover, some of the processors’ agents are indicating that they are mainly interested in under-30 months animals.

The cow trade has been under pressure, and it continues, with prices for R-grade cows eased back to around 300c/kg, which means the price has fallen by 30c-40c/kg compared to earlier in the autumn.

Prices for O-grade cows range from 280c/kg, and prices for P-grade are in a 255c-260c/kg range this week.

Young bull supplies continue at a low level, with the intake around half that of 2019. Prices have also tightened, with R-grade now being quoted for at up to 15c/kg under the comparable steer grade, at 350c/kg.

Better quality U-grade young bulls are being quoted for at 360c/kg.

For the year up to October 24, overall cattle live exports are 12% behind last year’s level, primarily due to fewer calves being sent to other EU markets.

Live exports to international markets have increased 47% so far this year, going mainly to Libya, Turkey, Algeria and Kazakhstan.