Young bulls maintain premium as processors resist price rises
The current level of supply, which is the highest since April, has eased pressure on the factories.
The beef prices at the factories are in a steadier mode this week, with supply holding steady at over 32,000 head for last week, which was almost similar to the previous week.
The current level of supply, which is the highest since April, has eased pressure on the factories.
Having reclaimed the lift in prices conceded during the later weeks of October, the processors have steadied the ship by holding quotes unchanged from last week.
The base for steers is on 730–740c/kg. It is difficult to get above 740c/kg this week, with the processors showing clearly that they want most stock on the grid and resisting lots being offered on a flat price basis.
The heifers are quoted at a base of 740–750c/kg with resistance to paying stronger prices.
Angus and Hereford continue to meet with very strong demand, with the breed bonus, in addition to the quality assurance bonus, the added incentive to push the return close to €8/kg.
Suppliers are reporting a shade more variation on the cow prices this week with some of the processors now offering quotes weaker by up to 40c/kg on the rates paid during early October.
The general quote for R-grade cows this week is ranging 690–700c/kg. Some suppliers with larger numbers to offer or well-fleshed cows are reporting deals for a few cents a kilogram over 700c/kg being available.
The young bulls continue to be in demand at a slight premium over the steer price, with 750c/kg being quoted for R-grade this week, but the weekly supply remains low.
It is a balancing act for the factories. They want a decent intake for the next fortnight to beef up supplies for the Christmas market but they have set their target at getting sufficient at the current price.
Finishers are balancing on whether to sell or hold off to speculate on a stronger trade post Christmas, which is a gamble, because January can be a lean month for demand as housewives reassess their available spend post the Christmas celebrations.
"They [factories] have been pulling the prices for the past three weeks, and it appears that they feel they have got the balance to the level they can afford to pay without causing finishers to revolt and can run with that for a few weeks", was one analysis this week.
The intake for last week was 32,169 head, almost the same as the previous week, and at a scale not delivered to the factories since April.
The intake included 12,054 steers, 9,835 heifers, 8,129 cows, and 1,706 young bulls.
