This week’s factory quotes for finished cattle sees prices coming under further pressure, with quotes back to similar price levels seen in late-January 2023.
Factory beef prices had remained relativity steady from February into May, but processor warnings of beef price reductions seem to be materialising over the past two weeks.
Most procurement staff sound confident of having sufficient cattle for the coming two weeks, despite supplies of cattle being forecast to dip further in the remainder of the second quarter of this year.
It will be interesting to see if the move to reduce quotes at a time when farmers are busy with silage cutting will cause farmers with finished cattle to sell, to wait it out for a few weeks.
The advice to sell cattle as they come fit remains the best strategy in the present market situation.
Factory quotes: Heifers and steers
Heifers are being quoted at prices ranging from €5.15-5.25/kg on the grid this week. The stronger prices are available for well-finished heifers with a good carcass weights.
The weekly supply of heifers has remained below 10,000 head for the past 10 consecutive weeks and the cumulative heifer kill is over 10,600 head below last year.
Steers (bullocks) are being quoted at €5.10-5.20/kg on the grid. A breed bonus is available on all in-spec Angus and Hereford heifers and steers. These bonuses range in value from 15-30c/kg.
The number of bullocks slaughtered to date this year is back by almost 12,000 head on last year’s figures. In the week ending Sunday, May 14, just under 60% of all steers slaughtered graded an O= or below, and 11% of all steers slaughtered had a fat score of 2= or below and can therefore be deemed as short of flesh.
Cows
Cows have taken a price hit this week too, with some processors attempting to shave as much as 20c/kg from their cow-price offering. The most severe price cuts are coming from the top end of the trade.
There is plenty of variation within grades on cow price, depending on factors such as the outlet, cow quality, fat cover and carcass weight.
This week, procurement staff are quoting €4.80-4.90/kg for U-grade cows, generally speaking.
R-grade cows are being quoted at €4.60-4.70/kg. Cows grading O and P are being quoted at €4.40/kg and €4.30/kg respectively, however there is scope to secure more money for batches of heavy cows with carcass weights above 270kg.
Bulls
Generally speaking, under-24-month bulls are being quoted at €5.30-5.40/kg for U-grades, with €5.20-5.30/kg being quoted for R-grade bulls. More money is available in certain cases at some outlets.
Bulls grading O and P are being quoted at €5.00/kg and €4.90/kg respectively, with scope for bargaining in these categories too.
Finally, under-16-month bulls are being quoted at €5.10-5.15/kg on the grid.