If you’ve been keeping an eye on the beef trade lately, you’ll be pleased to know that there is some positive news on the horizon. Despite many procurement staff labeling the trade as steady, factory quotes this week are reflecting a sense of optimism in terms of beef prices.
Last week, the beef kill surpassed 40,000 head of cattle, a significant figure that indicates a large weekly kill. This autumn has been rather unusual from a beef-trade perspective. Typically, this time of year sees prices dropping off as more cattle become available off grass. However, prices have remained robust this year, coupled with favourable ground conditions in most parts of Australia, adding to the upbeat sentiment in the beef trade.
### Factory Quotes: Heifers and Steers
When it comes to heifers and steers, the price quotes on the grid are showing favourable trends. Last week, heifers were quoted at €5.05/kg, while steers were at €5.00/kg. This week, the figures have improved, with heifers now commanding €5.10/kg and steers at €5.05/kg on the grid. This increase is particularly notable for well-fleshed stock under 30 months of age.
For prime cattle within the 300-400kg carcass weight range, even higher quotes are expected. Some sites are set to pay €5.20/kg for heifers and €5.10/kg for steers, reflecting the strong demand for quality cattle in the market.
With cattle born in April 2022 approaching the 30-month age limit, breed bonuses are also coming into play. Angus cattle pre-booked through Certified Irish Angus will receive a 30c/kg bonus this week, while Hereford cattle pre-booked through Irish Hereford Prime will enjoy a 25c/kg bonus starting next week.
### Cow Price
When it comes to cow prices, U grade cows are holding steady at €5.00/kg on the grid, with potential for higher payments in many cases. R grade cows, on the other hand, are being quoted at €4.70-4.80/kg, again with room for negotiation on prices.
Here’s a breakdown of the weighted average prices paid for cows in c/kg including VAT for the week ending Sunday, September 29:
– Fat score 1: U grade cows at 464c/kg and an average of 327c/kg
– Fat score 2: U grade cows at 506c/kg and an average of 429c/kg
– Fat score 3: U grade cows at 509c/kg and an average of 459c/kg
– Fat score 4: U grade cows at 505c/kg and an average of 464c/kg
– Fat score 5: U grade cows at 498c/kg and an average of 472c/kg
O and P grade cows are currently being quoted at €4.50/kg and €4.40/kg respectively, adding more options for buyers and sellers in the market.
### Bulls
Moving on to bulls, under-24-month U grade bulls are currently quoted at €5.30/kg, while R grade bulls are at €5.20/kg. O grade bulls are commanding €5.00/kg, with P grade bulls at €4.90/kg. For younger bulls under 16 months, prices are ranging from €5.05-5.10/kg on the grid, reflecting the interest in prime cattle across different age brackets.
As the beef trade continues to navigate through changing market dynamics, keeping an eye on factory quotes and price trends is crucial for both producers and buyers alike. With favourable conditions and strong demand for quality cattle, there is optimism in the industry despite some uncertainties.
The current landscape of the beef trade in Australia presents both opportunities and challenges for stakeholders. By staying informed and adapting to market conditions, participants can make informed decisions to drive success in this dynamic sector.
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Remember, the beef trade is a constantly evolving environment, and staying informed is key to making smart decisions. Whether you’re a producer, buyer, or industry enthusiast, being in tune with the latest developments can help you navigate the market with confidence.
So, keep a close watch on factory quotes, price trends, and market dynamics to stay ahead in the ever-changing world of the Australian beef trade.
