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The discussions around Brexit this week and a weakening in the value of sterling to the euro is being raised as having the potential to insert downward pressure on the trade.
While some factory personnel are vocal in communicating this message in negotiations, the reality is that they are keen to secure sales from a presently tighter supply pool.
This is witnessing prices not deviating much from last week’s levels, with most steers and heifers trading on a base of €3.80/kg and €3.90/kg respectively.
Small numbers are moving at a 5c/kg lower base and likewise there are small numbers traded at the top of the market commanding 5c/kg extra, with choice heifers having the best scope to extract the few cents extra.
Agents are reported as becoming more cautious and less willing to pay higher in today’s dealing for cattle moving later in the week.
Cows
Demand for cows remains very strong, with mart managers all over the country reporting higher activity from factory agents.
Trends in the cow trade are unchanged, with a big differential between plants and even within a plant, depending on the number and type of cows on offer.
P+3 grading cows are trading from €2.90/kg to €3.05/kg, with good O grades from €3.10/kg to €3.20/kg. R grades are selling from €3.20/kg all the way to €3.40/kg at the top end of the market, with U grades 10c/kg to 15c/kg higher.
Bulls
Bulls also remain a similar trade, with €3.80/kg and €3.90/kg being secured by sellers handling a sales group of over 10 bulls and dealing with the same plant.
Other sellers with a very small number are being offered 5c/kg less. Weight has returned as an important factor in some negotiations, with plants typically allowing carcase weights rise to 420kg to 430kg without any price penalties.
Heavier carcases over 450kg to 460kg are, in cases, being cut 5c/kg to 10c/kg, but this is not across the board, with numbers on offer and the spread across the group affecting prices negotiated.
Bulls less than 16 months and trading on the grid are selling from a base of €3.75/kg to €3.80/kg. This excludes the 12c/kg QPS bonus for animals killing to the required specification.
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