Firm market as demand outpaces supply

With packers last week offering 8 to 10 cents more to secure finished—or nearly finished—cattle for this week's slaughter, the fat cattle market continues to show strength. “Today there are virtually no top-quality cattle available. It seems there is less supply than the industry currently needs,” a market agent told World Beef Report (WBR). Another operator added that “demand is absorbing everything that appears,” highlighting the shortage of grassfed finished animals.

Deals for heavy and top-grade steers are being closed around US$ 4.90–4.95 per kg carcass. “If you have volume and special carcasses, you can reach US$ 5.00, but those deals are rare—truck by truck,” said one source.

As for cows, the best and most finished lots may reach US$ 4.75–4.80 per kg, although most available cattle don’t meet that level of finish, with most trades occurring in the US$ 4.65–4.70 range.

One informant noted that “some packers” are signaling they may be reaching their limit in the bidding war to secure slaughter cattle. Slaughter bookings remain short—no more than a week.

Another factor restricting spot market supply is that feedlots are taking 400–420 kg steers at prices between US$ 2.60 and US$ 2.70 per kg live weight for quota-eligible cattle. “Producers do the math and sell, since these deals come with no commission or added costs,” said a source.

This evolving finishing system means feedlots are increasingly impacting total slaughter volumes, while the availability of grassfed cattle ready for slaughter keeps shrinking. One source reiterated their view that no substantial change in grassfed supply is likely before August.