More 'life' in cattle trade, but processors remain cautious
It is generally agreed there is a little more on price being conceded by processors this week to secure stock, which is very welcome among suppliers and has opened the opportunity for more hard selling to achieve an extra return.
Factory prices for cattle are stable, with some early shoots showing signs of a tightly controlled, marginal hardening as demand for stock firms up, while the major processing groups are reviewing and planning adjustments to handling lower intakes.
Most factories are quoting steers on a base of 700c/kg and heifers on 710c/kg, both similar to last week, but suppliers are reporting there is an extra 5–10c/kg being paid for both categories in deals with processors to secure more stock.
Flat price deals and the carrot of partial or full transport costs being on the negotiating table are also beginning to surface again, particularly for larger lots of steers and heifers.
It is generally agreed there is a little more on price being conceded by processors this week to secure stock, which is very welcome among suppliers and has opened the opportunity for more hard selling to achieve an extra return.
It is a good sign that all categories are showing a shade more positivity. Young bulls are making up to 730c/kg for R-grade this week and demand for cows continues very strong, with 675–680c/kg going for R-grade.
“There is a glimpse of more life in the trade this week because factories are looking for cattle, but they are still very cautious on paying higher prices and there is no indication that there is a surge in price in the offing — maybe rather a little, very tightly controlled,” was one analysis this week.
It has also emerged in recent weeks that the major processors are actively adjusting their operations to handle lower throughput. Closure of sections of operations and some redundancies are appearing as inevitable over the coming months as a consequence of less stock for processing and marketing.
Some adjustments are already in train and more appear to be on the way as processors analyse the potential consequences of a further 3-5% drop in supply predicted for 2026.
Supply last week at 30,481 head showed a drop of 500hd on the previous week, while it was down by almost 4,000 on the same week last year.
The drop compared to 2025 was reflected across all categories. Last week’s kill included 9,736 steers, 9,820 heifers, 7,014 cows and 3,432 young bulls.
The overall situation for the first four weeks of 2026 shows a total increase of 12,000 head on January 2025 supply to factories, but if the predicted further reduction in available stock is accurate, factories could be facing tougher days ahead in 2026.
