Factory control tightens as cattle numbers fall to year-to-date low
Beef processors are continuing to maintain a firm hand on control of the prices being paid for stock while battling with the pressure to maintain their intake of supplies at the minimum required to complete orders.
The upward trajectory of the export market returns for beef to the processors has begun to show the first sign of an easing year-to-date.
The Agfood Regulator analysis of the prices received by the four main export processors shows a slight reversal of the year-to-date weekly upward trend affecting sales for the last week in April and the first week of May supplies.
After the consistent week-on-week rise to late April, the market price returns to the processors for mince fell by 1.09% in the final week in April and a further 0.81% the following week, which are the latest available.
Hindquarter beef slipped marginally by 0.12% at the end of April, but more than recovered the dip with an increase of 0.51% in the first week of May. Forequarter continued to move upwards, gaining 0.63% for the last week of April, and a further 1.24% in the first week of May.
While these changes are marginal and should have minimal impact on the returns being paid to producers, any easing of the markets coming off the record high level overall year-to-date is worthy of note.
Meantime, the beef processors are continuing to maintain a firm hand on control of the prices being paid for stock while battling with the pressure to maintain their intake of supplies at the minimum required to complete orders.
The overall pattern for this week is showing a slight hardening of the prices being paid, with the processors operating on the lower end of the price range having to increase their offers to get sufficient stock.
Steers are being quoted on a base of 740–745c/kg, with the factories finding it hard to get any volume at the lower end, and up to 750c/kg being paid to hard sellers.
The trade for the heifers is similar. They are on a quoted base of 750–755c/kg, with suppliers reporting a good percentage of the sales are on a base of 760c/kg.
One of the bigger changes is more resistance by factories to buying on flat prices and suppliers reporting the processors are more determined to move all purchases onto the grid.
Some flat price deals are still on offer for Angus and Hereford crosses, for which the demand is holding strong.
The cow trade continues strong, with R-grade ranging 725–735c/kg and up to 740c/kg, while interest in the larger numbers of young bulls appears to have waned a shade, but the prices are holding at around 750c/kg for R-grade.
There was further tightening of the supply for last week, with a year-to-date lowest weekly intake of 28,344 head, which was 3,500 head less than a year ago. All categories, with the exception of heifers, were back on the same week last year. The supply included 10,924 steers, 9,191 heifers, 5,631 cows and 1,992 young bulls.
