Beef trade: Factories continue to quote 340c/kg in the main

It’s a case of ‘as you were’ for beef quotes, with most beef processors maintaining prices on offer at 340c/kg for heifers and steers, with some farmers negotiating 345c/kg.

Saying that, at the very top of the market, 350c/kg may be available for in-spec cattle, but these quotes are few and far between.

With a shorter working week, and restrictions still in place with regard to Covid-19, the kill will remain on the lower side as was the case in recent weeks.

While the prime trade is mostly static, cow quotes are edging upwards. The general run of prices for cows are 250-260c/kg for P-grading animals and up to 260-275c/kg for O-grade cows, with those falling into the R-grade category hitting 280-300c/kg.

In terms of bull prices, factories are offering 320c/kg for O-grades. R-grade bull quotes stand at last week’s level of 330c/kg, while U-grading bulls are making 340c/kg.

AgriLand recently carried out an analysis of the 2020 beef kill to date. From the onset of the year, supplies were predicted to tighten into the summer months, with many hoping that this fall in readily available cattle would result in higher prices.

This drop has come to light in recent weeks, but Covid-19 has played a role with a depressed appetite for cattle due to a collapse in the foodservice sector and this is expected to continue in the short-term at least.

Additionally, many farmers have re-jigged plans and turned cattle – that were due to be finished in the coming weeks – back to grass in the hope for higher prices during the backend of the year – resulting in lower throughput in the short-term.

Another aspect that is leading to a lower throughput is the absence of young bulls. Really from January 2019, farmers faced issues with getting bulls slaughtered and were also exposed to severe price cuts – even specialist bull beef finishers were exposed to this uncertainty.