Ireland: Early indicators of a seller’s market for beef
Demand for beef animals art the factories is putting more pressure on the processors to release their grip on the upward only movement on the prices being demanded by the producers.
The intake last week of more than 35,200 head was up by 1,500 head compared to the same week last year, but not sufficient to ease the pressure for supplies on the factories.
For most of the factories it has become a balancing act to match intake with demand without conceding to a spiral on the cost of the stock.
The average cost of both steers and heifers to the processors has increased by an estimated 5-7c/kg from the early days of last week as producers adopt a hard sell policy before parting with finished stock.
This week the base for steers is ranging 510-515c/kg. Some lots are reported to be making 520c/kg, but paying the higher prices is being resisted by the processors as far as possible.
The heifers are trading at 515-520c/kg base, in general, with some suppliers reporting deals with the factories for a base of 525c/kg and the occasional quality lot of larger numbers claiming that they are in the frame for a few cents per kilo above that.
It is unusual to have the trade so strong in January. Market demand for beef is strong and supplies are tight, which heralds well for the spring trade over the next three months.
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