Scarcity and market demand sees base price edge forward
Sean Ryan of Sixmilebridge Mart had his last day in charge of the mart on Saturday after ten years at the helm. His successor is Clare man and Quin native Joe Clune who takes up the position with immediate effect. Pictured L-R is Joe Clune, Manager and outgoing manger, Sean Ryan. Picture: James Tracey.
It has shaped into an unusual year for beef finishers with the cattle prices at the factories still moving upwards as the season edges into July.
The late spring growing season has added considerable costs to the finishing of cattle this year, but the scarcity of supply coupled with the strength of market demand for beef has combined to ensure that those with factory ready cattle are benefiting.
The base prices have edged forward by around a further 5cents/kg at the processing plants this week as the scramble to get sufficient stock to supply the order books requirements continues to put pressure on the factories.
The competition between processors has intensified and the factory agents are finding that they have to pay over the odds to get extra cattle at the live sales with many finishers now realising that taking the option for live sale has some real benefit.
The quoted base for steers has increased to 415-420 cents/kg with an increasing percentage of the throughput at the factories believed to be achieving the higher end this week and reports of some deals being done for up to 425 cents/kg.
At the same time some of the prices being reported from the mart sales for choice lots of finished cattle indicate that these cattle are costing well above the factory prices.
The heifer trade is covering a wider range with quoted base prices from 420cents/kg to 430cents/kg amid reports that some finishers have secured up to 435cents/kg in hard selling.
The young bulls and cows have also benefited from the buoyancy of the markets.
Young bulls are now close to parity on price with the steers at 420-425cents/kg for R grade with some increase in the intake of young bulls being interpreted as helping to ease the deficiency in other categories.
The resumption of more catering as Covid-19 restrictions are gradually eased, is helping to drive the demand for manufacturing beef and consequently the cow trade.
Prices for good R grade cows are hitting a new peak of 385-390 cents/kg this week.
The O grade cows are making up to 360cents/kg and the best of the P grade cows are fetching 345-350cents/kg with the cow prices in a range not experienced for a long time.
The overall intake at the factories is now running at around 6,000 head/week behind the same weeks in 2020 which is mounting the pressure on the processors.
Intake last week was 30,283 head which was probably around 2,500-3,000 head under the comfort zone for the processors.
All categories are down on last year. Steers are heaviest hit at 11,084 head which is 2,500 less than last year while heifers at 8,777 head are down 1,500 head.
