A notable feature of the beef trade in the last week has been greater activity in the market for cows. This is not surprising, with a rise in demand for manufacturing beef generally a feature of the trade early in the new year.

Agents have been more active in sourcing cows direct from farms and have also stepped up purchasing activity in marts that have resumed sales, a factor which is worth noting for sellers with low numbers and poor negotiating power.

Prices are variable, with numbers on offer having a big influence. P+3 grades are selling in general from €2.90/kg to €3.05/kg, with good fleshed O=/+ grading cows selling from €3.10/kg to €3.15/kg.

In both cases, feeders with large numbers on offer have secured 5c/kg extra, with a similar scenario for better-quality cows.

R grades are selling from €3.25/kg to €3.35/kg, with higher paid where cows have been sold with mixed lots of U grades, which in turn are trading from €3.35/kg to €3.50/kg at the top-end of the market.

Lower throughput

Cattle supplies are tighter and have not recovered to levels witnessed before the Christmas break.

Last week’s kill was recorded at 28,006 head, with factory agents having to work harder to source stock.

This is leaving more negotiating power with sellers, many of whom are securing a base of €3.80/kg for steers and €3.90/kg for heifers.

Buyers are trying to insert some pressure on prices, citing the sterling to euro exchange rate weakening 3p to 87p to the euro in recent days. Their chances of easing prices back will be limited by tight supplies in the market and an appetite to handle higher numbers.

Bull throughput remains steady, with 4,716 head killed last week.

Prices are unchanged, with the general run being €3.70/kg for O+ grading bulls, €3.80/kg for good Rs and €3.90/kg for U grades.

Buyers have gotten a bit tighter on carcase weight limits, with 5c/kg to 10c/kg taken off the price for bulls weighing 420kg to 430kg upwards.

This is not being implemented across the board, with cuts being waved in cases where only a small number of bulls in a group are falling outside of spec.

There is a significant differential in bulls less than 16 months and trading on the grid. Some plants with less interest are quoting as low as €3.70/kg, but most are selling from a base of €3.75/kg to €3.80/kg.

Northern trade

The northern trade is solid. U-3 base quotes are £3.46/kg to £3.50/kg, leaving R grades 6p/kg lower at £3.40/kg to £3.44/kg.

With sterling weakening to 87p to the euro, this equates to €4.12/kg to €4.18/kg including VAT.

Prices being paid are exceeding this, ranging from 2p/kg to 4p/kg for sellers with smaller numbers to 8p/kg to 10p/kg higher for regular sellers.

Quotes for good-quality O+3 grading cows remain at £2.40/kg to £2.50/kg (€2.91/kg to €3.02/kg incl VAT), with higher prices again secured by those handling high numbers.

The AHDB reports positive retail beef sales over Christmas, with reserves also said to be low.

The trade has resumed on a similar basis, with R4L grading steers and heifers averaging £3.60/kg to £3.67/kg (€4.36/kg to €4.45/kg), with prices strongest in north England and Scotland.