Cattle quotes for this week have seen some factories ‘take a U-turn‘ on price-pulling strategies and move to raise beef quotes, while a few other processors have attempted to continue down the road of citing reduced quotes.
It appears the downward pressure strategy that had been exerted on the cattle price by all factories over the past two weeks to drive out cattle numbers hasn’t been cutting any ice, and some processors have reversed cuts this week.
Generally speaking, processors appear more eager to secure numbers of beef cattle across all categories this week.
Beef quotes
Starting with heifers, €4.20/kg on the grid seems to be the opening offer from most processors this morning, Monday, August 23.
Steer quotes haven’t moved from last week at €4.15/kg as of today. However, with widespread sunshine and a generally dry week forecast nationwide this week, it could take another 5c/kg or more across the steer and heifer category to lure farmers away from fieldwork and go with a load of beef cattle to the factory.
While the above quotes are the general run this week, some factories have cited quotes of €4.10/kg and €4.15/kg for steers and heifers respectively.
However, it is worth pointing out that staffing numbers in some processing facilities are reduced this month as many staff avail of annual leave.
This, along with other factors that are reducing staff numbers, may give rise to reduced interest in stock from a few processors this week, hence the corresponding reduced quotes from these facilities.
Next up is cows and the demand for cow beef continues on a high, having appeared to be unaffected by the cuts to steers and heifers over the past two weeks.
Quotes to farmers for cows this week are coming in at a flat price of €3.50/kg, €3.60/kg and €3.80/kg for P-grade, O-grade and R-grade cows respectively, with up to 10c/kg extra being quoted to producers with larger numbers of well-fleshed cows.
Farmers with groups of heavy, well-fleshed cows have the ball in their court this week, and will not be cut-short by procurement staff when looking for a few cents more on cow price.
For under-24 month bulls, a flat price of €4.10/kg and €4.20/kg for R and U-grade bulls respectively is being quoted, however farmers with a group of well-fleshed bulls have scope to negotiate on price here, as the demand for manufacturing beef rises ahead of the back-to-school season.
Finally, under-16 month bulls are being quoted at €4.15/kg on the grid.
Speaking with procurement staff this morning, there was an evident heightened interest in bulls, so farmers should keep this in mind when selling beef this week.
It remains to be seen what way prices will go into the week, but a change in quotes will likely be seen midweek – or before it – depending on how today’s quotes are received by farmers and their effectiveness in securing cattle.