Factory agents have become more active this week, with the trade slowly starting to lift. There are more sellers securing a base of €3.65/kg for heifers, while there are reports of small numbers of traders with large lots of young heifers securing €3.70/kg. The high steer kill of 16,963 head is allowing plants to keep a lid on the €3.60/kg base price.

However, there is more room to negotiate on age with some plants starting to pay the same base (were cutting 10c to 15c/kg) across the board where small numbers of overage steers are traded in groups of mainly underage stock. This is more negotiable for continental steers, with Friesian steers still slowest to move. Some plants are also easing weight restrictions to 420kg without any penalties imposed.

There are numerous reasons behind factory activity, despite the kill recorded at 33,933 head last week.

Favourable weather is allowing cattle to be held outdoors longer and, with a tightening in supplies forecast, it is clear factories want to process as high a volume as possible before numbers tighten.

The overriding factor is continued strengthening in the UK and continental EU markets. Steer prices have increased by 5p/kg in Great Britain, despite higher volumes processed, with Eblex reporting the GB price for R4L steers at £3.55/kg (€4.70/kg including VAT).

R4L heifers are reported at £3.50/kg (€4.63/kg including VAT). With an 18p/kg (23c/kg) increase in beef price over the last month, the Irish v UK price differential has increased to well over €300 on an equivalent R grading steer or heifer raising strong questions on the margins being returned to Irish farmers.

The trade in Northern Ireland has also strengthened to a U-3= base price of £3.30/kg to £3.32/kg (€4.36/kg to €4.39/kg including VAT).

Improved live trade: Factory agents have also become much more active in mart sales, with prices increasing by €10 to €30 per head and more demand for out-of-spec stock.

Fleshed, slaughter-fit steers are trading for €1.90 to €2.10/kg with heifers trading from €1.90/kg to €2.10/kg.

Low bull kill: The lower bull kill is maintaining a good source of competition. U grade bulls are selling, in general, from €3.60/kg to €3.70/kg, with reports of specialised finishers negotiating 5c/kg extra excluding bonus payments.

R grade bulls are selling from €3.50/kg to €3.65/kg where traded as a small percentage of mixed R/U grading lots. Some plants are keeping a lid on price but offering allowances on weight to 430kg in a number of plants with the top limit of 450kg in one plant.

Cow trade strong: O grading Friesian cows are selling mainly from €2.95/kg to €3.10/kg, with large numbers trading at the top of the market for €3.15/kg.

P+3 grading cows are selling mainly from €2.80/kg to €2.95/kg. Cows starting to appear from the parlour and lacking flesh are facing a 30c/kg to 50c/kg lower price, depending on severity of under finish.

O grade continental cows are selling from €3.15 to €3.25/kg with R grades selling to €3.35/kg.