The cattle market continues to be characterized by limited supply, although processors have become somewhat more selective in their purchasing. According to sources consulted by World Beef Report (WBR), the plants that had been leading the market with the highest prices in recent weeks have now secured cattle for a longer period, while some major groups have reduced slaughter activity and extended bookings. In addition, several processors are relying on feedlot cattle, leaving less room for grass-fed animals.
Current references stand at around US$/kg 5.60 carcass for special export steers and US$/kg 5.30 carcass for the best cows. However, supply remains extremely limited.
“Those who have cattle want short bookings, while those paying these prices are asking for deliveries two to three weeks out,” one source said.
There are also significant differences between plants. Some processors are not quoting prices at all for cattle scheduled between July 5 and 7, while others, with greater procurement needs, are indicating US$/kg 5.50-5.55 carcass for steers and US$/kg 5.25 carcass for cows.
Sources said winter forage crops continue to perform below expectations, a factor that is limiting cattle supply. In some cases, operators believe it may be more profitable to sell moderately finished cows at US$/kg 5.10 carcass rather than adding weight during winter in hopes of achieving US$/kg 5.30 carcass.
“We are in winter and the forage crops have stalled,” one trader commented.
For now, expectations are that cattle supplies will remain tight in the coming weeks, limiting the potential for significant price declines despite somewhat less aggressive processor demand.
