6c/kg drop follows big squeeze by processors
Beef men are hoping that the attempts by some of the plants to pull quotes and prices doesn't prove to be as contagious as the drop in credit ratings for countries across the EU.
It is obvious that the processors have decided that it is time to shout 'stop'. Reports suggested that they were very active over the weekend sourcing stock at last week's prices. The theory is that if they secured adequate numbers, they would then drop the quotes to see what the reaction would be this week.
Quotes for the steers today are probably 5-6c/kg back from last Tuesday, with the heifers down at least this amount and maybe a little more in places. Most factories are offering a base quote of 385-390c/kg for the bullocks, with 390-395c/kg being paid.
Some big finishers are holding out for €4/kg. Similarly, the heifer quotes are generally 395-400c/kg, with farmers refusing to sell at less than €4/kg. Top prices appear to be 405c/kg, even though 410c/kg was agreed with finishers over the weekend.
Men with good young bulls are bargaining for a flat price of 400c/kg for their R and U grades. This figure is the general quote for the Us, while the quotes for the Rs vary from 385-395c/kg. The plants are offering 370-385c/kg for the Os.
Commenting on the trade, the IFA's Michael Doran said that the markets remain strong and that farmers were bargaining for up to 400c/kg for their steers and 410c/kg for their heifers over the past few days.
The cull cow trade is probably holding a tad firmer than the rest. Donegal are offering up to 360c/kg for the heavy U-grade cow, with Moyvalley on 358c/kg. R grades are making 324-354c/kg depending on weight of carcass and also where you sell. Prices for the Os range from 322-342c/kg, with the P+ cows selling for 370-385c/kg.