Factories make move to put pressure on trade

Factories have signalled a move to apply some pressure to the beef trade, with some working off 5c to 10c/kg less for Monday morning quotes.

Some processors are applying cuts to any cattle being booked in from Monday onwards, while others say there are waiting until midweek before they apply any cuts with the hope of flushing out cattle for the next two to three days.

The move comes after a number of weeks of threats from some on pulling price which failed to materialise, but the mood music appears to have changed on Monday morning, with some agents adopting a take-it-or-leave-it approach at the lower quotes.

These lower quotes are working off a base price of €7.40/kg, with €7.50/kg being quoted for heifers in the factories applying the most pressure.

There are a lot of processors still working off last week’s quotes at €7.50/kg for bullocks and €7.60/kg for heifers, with the usual added incentives available where numbers are involved.

Tight numbers

Numbers of finished cattle remain very tight on the ground, with no great flush of cattle coming on stream in the next few weeks.

That said, some agents are reporting a few more cattle about for the next two weeks compared with the last month.

There is generally no pressure on farms to shift cattle at the moment, with an abundance of grass and fodder available as we head towards the winter months.

Cows

The cow trade hasn’t escaped the price pressure, with some factories also back 10c/kg for cows for Monday morning’s quotes.

There appears to be more leeway with cows though, with many standing on with last week’s quotes, especially where numbers are involved.

R grading cows are generally trading at €7.40/kg to €7.50/kg, while O grading cows are coming in around €7.10/kg to €7.20/kg.

P grading cows are back to €6.90/kg in some locations, but €7/kg is available especially where numbers are involved.

Bulls

Up to €7.80/kg is still available at the top end for U grading bulls where numbers are involved, working back to €7.40/kg to €7.50/kg for O grading bulls.