As we enter into the unknown of 2020, some beef processing plants have moved to increase base quotes on offer for steers and heifers, while others have opted to hold prices at the pre-Christmas period level.

At the higher end of the market, steers are being bought for 355c/kg, while heifers quoted at 360c/kg. Prices are dependent on the number of cattle available, with supplies at some plants tightening over the Christmas and new year holiday period.

At the other end, a number of factories are paying 355c/kg for both steers and factory-fit heifers, but these plants are coming under increased price pressure when it comes to sourcing supplies – with farmers calling for increased quotes.

If we rewind 12 months, beef quotes during the first week of January 2019 stood at 375c/kg for steers, while their female counterparts were making 385c/kg – a 20-25c/kg difference.

Saying that, after all that happened in 2019 in terms of price, base quotes have been gathering momentum in recent weeks – albeit at a slow pace.

Turning to the bull trade, new year prices begin with the same continued variation across plants – with location and demand the two factors defining prices.

Bull base quotes amount to 345c/kg for R grades in the main, with O-grades hovering around the 315-330c/kg mark; 270-310c/kg is being quoted for P-grade types and U-grades are being bought for approximately 350c/kg.

Similar to the bulls, there is a wide variation in prices available for cows. Factory buyers are currently starting negotiations with farmers at 270-275c/kg for P-grade cows, 280-285c/kg for O-grade animals and 300-305c/kg for R-grade lots.