Status quo maintained as processors and finishers hold firm
The busiest day of the mart in Cashel as lorries, trailers, jeeps and tractors queued up to unload their livestock on Saturday. Picture: James Treacy
It is more of the same at the beef factories this week as the status quo is maintained on prices while each side continues to hold their ground.
Neither the processors nor the finishers being prepared to yield a centimetre of their ground stand is an apt summary of the situation around the country for the majority of the deals being done for cattle this week.
The supply remains steady and finishers with factory ready cattle want to keep them moving, while market demand is constant and the processors have a requirement for every animal they are getting.
The early grass cattle are going to be three to four weeks later than usual, because of the poor grass growth in May resulting in what has become a balancing act for the processors to keep sufficient intake without conceding on the prices.
For the finishers, the prices continue to run ahead of 2020, which is a positive, but they argue that 2021 has been a long late Spring involving higher costs and the extra is necessary to hold margin.
The quoted base price for steers remains at 410 cents/kg with some deals being negotiated for a base of 415 cents/kg this week, but it continues to be very difficult to get above that even for finishers with larger numbers of stock available or a factory under extreme pressure to get the extra stock.
The heifers are on a base of 415 cents/kg which the factories are trying not to concede on, if possible at all. It is being reported as very difficult to get extra for heifers at the majority of the plants this week.
The exception are producers with Angus and Hereford for which the demand continues very strong with the breed bonus of up to 20 cents/kg boosting returns. Both of these breed finisher associations have done a remarkable job in marketing which continues to pay off.
The young bulls are a firm trade with prices on par with the steers at 410 cents/kg for R's and the belief that the young bulls are making up any deficit in the supply chain over the current weeks.
There is a strong trade for the cows and the prices are very firm with the good R grade cows making up to 370 cents/kg this week with prices generally 360-365 cents/kg. The O grade are at 340-350 cents/kg and P grade at 330-340 cents/kg.
The intake for last week was slightly higher at a total of 31,258 head, which included 11,426 steers, 8,500 heifers, 3,506 young bulls and 7,167 cows.
The supply was marginally ahead of the same week in 2020. The steers were higher than last year by 1,000 head, and young bulls were up 600 head, while the cows were over 1,000 head lower than 2020 and heifers were back 600 head.
