Steers hit 490-495c/kg as prices continue to plunge

Most of the factories have reduced their quoted base prices for both steers and heifers by a further 5c/kg.

The incessant week-on-week drop in beef prices at the factories remains ongoing this week, with further reductions to the base prices.

Most of the factories have reduced their quoted base prices for both steers and heifers by a further 5c/kg as their suppliers appear to be losing out on the battle of resistance to the downward trend.

Steers are being quoted at 490-495c/kg. While most of the suppliers are holding out for at least 495c/kg and some deals are being reported to return 500c/kg base, the percentage on the higher returns is tightening.

The heifers are generally ranging at 5c/kg over the steers on a base of 495-500c/kg. Some suppliers are managing to negotiate for 505c/kg but it is getting more difficult to reach.

"The trade is getting tougher every week, and there are serious concerns about the autumn trade coming into the conversation among farmers now," one finisher told this paper.

"The prediction of fewer finished cattle on farms in 2024 to suggest tighter factory supplies for the balance of the year should be good for finishers, but the week that the factories are getting more cattle than they require, they'll take advantage of it, as they always did, to reduce the prices," he added.

Farming leaders are challenging processors to justify the reduction in prices in recent weeks and urging finishers to strengthen their resistance to accepting the cuts.

They advise that the markets are strong, there is demand for the cattle, and the strong mart trade for the near-finished cattle is evidence of the real market.

Beef farmer representatives are also pointing out that improved grass growth on farms in recent weeks will benefit cattle retention on the land and ease pressure on farmers to reduce stocking levels.

Young bulls continue to trade at a premium of 20-25c/kg over the equivalent grade steer, which is 520-525c/kg for R-grade.

Cow prices are holding steady. Demand for beef in the catering and manufacturing sectors remains very strong, and it continues to be the backbone of the overall trade for volume supplies.

R-grade cows continue to make 460-475c/kg, with supplies remaining strong and an apparent demand for all being supplied.

Supply to the factories for last week was strong overall at 1,000 head up on the same week last year. Total intake for the week came to 32,773 head, with most categories higher than the corresponding week in 2023.

The supply included 11,511 steers, 8,869 heifers, 9,336 cows and 2,269 young bulls.