Beef Market Report: Prices likely to hold steady to the end of the year
Pictured at the sale in Cork Marts Cahir are two Shorthorn bullocks born April 2020 & average weight 495 kilos which sold for €930 each. Photo O'Gorman Photography
Beef processors and producers are each closely watching each other's movements as the trade edges into the final weeks of a remarkable year.
Most importantly the trade for beef animals continues steadily on both the supply and price fronts with little indication of any pending change to the end of 2021. The intake continues strong and the prices remain steady.
The procurement of animals to supply the pre-Christmas market is now getting underway, most of which will be completed within the next three weeks. It is a crucial point of the year for processors to secure cattle and it has often been an opportune time for suppliers to get some added benefit from the demand.
Right now the processors are reasonably content with the intake at the factories. While there is no sign of any glut, and the peak weekly supply for 2021 is not going to reach the level of previous years, both sides will be reasonably happy for a 'steady as she goes' ending to the year.
The factory bosses have tightened their rein on paying much over the official quotes, but they know that cutting the base price is an option now. On the other side, their suppliers, are having a year ending, which is beyond their expectations and would find it hard to complain on that front this year.
It has been a very expensive year for all farm production. Input costs have rocketed. At least product prices have been the strongest ever to offset the surge in outlay.
Processors entered 2021 with the pending impact of Brexit impossible to predict and fears for weaker market demand. Demand for beef has continued very strong with returns from the export markets much better than had been feared.
The indications are that factory intake will be back by a bit more than 100,000 head year on year. It had been forecast to drop by up to 120,000 head. Returns to producers have had an exceptional year and thoughts are now turning to where the trade will be for the Spring months of 2022 in an environment that is becoming less certain forward.
The intake for last week, a four-day working week with the October Bank Holiday on Monday, continued strong at 33,955 head, showing that the kill per day was increased to compensate.
There were 15,117 steers, 9,149 heifers, 6,839 cows and 1,422 young bulls.
The base for steers remains unchanged at 415 cents/kg with agents under orders to stick to the quoted price. Heifers are generally on a base of 420 cents/kg with an increase this week on the percentage reported to be dealing at a base of 425 cents/kg.
The young bulls are generally on the same base as the steers at 415 cents/kg for R grade, while the cow prices have eased slightly. It is more difficult this week to get 390 cents/kg for R grade cows.
