€5/kg benchmark is breached in blow to finishers
The factory quotes for all categories have been further reduced this week, with the prices for prime beef animals, steers and heifers dropped by 5c to 10c/kg
The breaching of the €5/kg benchmark for beef animals at the factories this week has marked a physiological as well as a financial blow to the finishers.
For the first time in several years, finished prime beef animals being supplied to the processors on midsummer day are returning less per kilo than their counterparts had two and a half months earlier.
"Finishers who had bought in forward animals to finish for the early summer trade this year have been skinned after listening to the predictions of an expected shortage for the factories, with intake set to tighten" summed up one supplier, who described this as the "worst spring-summer season I can remember for finishing cattle".
But the incomparable aspect of the trade is the prices being paid for the forward and finished beef animals at the lives sales. Who is buying these animals and where are they going?
At the weekend, some examples of the mart prices reported by the sales centres included €2,410 for 755kg BBX steers, €2,010 for 660kg CH steers, and €1,490 for 472kg CHX.
Similarly for heifers, with €1,530 for 500kg LM, and €1,570 for 495kg CH are some of the examples which set suppliers to the factories scratching their heads.
The factory quotes for all categories have been further reduced this week, with the prices for prime beef animals, steers and heifers dropped by 5c to 10 cents/kg, amid increasing concern as to where the decline is set to bottom out this season.
Steers are being quoted at a base of 490c to 495c/kg. Suppliers are reporting that while 495c/kg can be achieved, it is extremely difficult to get steers to a base of 500c/kg this week.
In general, heifers are trading on a base of 5c/kg premium to the steers on a range of 495-500c/kg and in some deals a couple of cents/kg more for very good regular suppliers.
The young bulls are making 490-505c/kg for R grade, while the cow prices have slipped further with R grade cows at 445-455c/kg.
The intake at the factories is being maintained very steady at 31,000-32,000 head/week with the belief the management of feed lot and contract cattle has been a key factor in balancing intake.
The supply for last week was 32,490 head, which was slightly higher than the same week last year. Year to date the throughput at the factories is down 22,000 head on last year.
Most categories were slightly higher than the same week in 2022, with steers at 11,392 head, heifer 8,522, cows 8,460 and young bulls 3,509.
