Strong year-end as beef base quotes increase
10c/kg 525c/kg Base For Quotes This 515 Steers Offering By Have Up With Week, Increased Processors To The
A surge by the factories to source sufficient cattle to fill their bulging order books for the pre-Christmas supermarket trade is boosting returns to producers this week.
Competition between the processors for factory-ready cattle has intensified over recent weeks, forcing prices to continue to move upwards, with finishers who wisely targeted the pre-Christmas market and held back on earlier sales being rewarded.
Although the supply last week increased to within the shadow of 40,000 head, the appetite for cattle at the factories has continued to sharpen.
The base quotes for steers have increased by up to 10c/kg this week, with processors offering 515-525c/kg. Those finishers with large numbers of well-finished cattle are in a strong position this week to hold out for up to 530c/kg base for quality lots.
Heifers are continuing to hold a premium of 5c/kg over the equivalent grade steers, with quoted prices ranging 520-530c/kg and reports of deals for larger numbers of quality heifers at up to 535c/kg.
Beef markets throughout the autumn remained strong, and the processors were working on a week-by-week basis to meet demand, which meant that there was no carryover of stocks at the factory cold rooms approaching the busy period.
Suppliers of Hereford and Angus cattle are having a super finish to the year, when the extra breed bonus payments are added to the factory prices. Returns to producers of 570-580c/kg are being widely reported as achievable for cattle being supplied to the factories this week.
"A very strong finish to the trade up to Christmas is now inevitable because the numbers left on farms is continuing to tighten and the processors will continue under pressure," was the summary of one finisher this week.
The demand for cows to supply the catering and manufacturing sectors has also made strong gains. The well-fleshed R-grade cows are fetching a new record price of having topped €5/kg, with some of these comfortably hitting up to 510c/kg.
Supply for last week was 39,855 head, around 800 head higher than the same week last year. The kill for the week included 14,594 steers, 12,369 heifers, 10,078 cows, and 2,070 young bulls.
The intake of both steers and heifers was up on the corresponding week in 2023, while the cow numbers were back a shade.
