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Despite factories chasing cattle across the country, they are reluctant to pay significantly higher base prices.
Farmers with numbers of what are called in-spec cattle are in the best negotiating position and the Irish Farmers Journal has heard of factories paying as much as a €3.85/kg base for steers and €3.95/kg for heifers, at the weekend.
Base quotes are now starting at €3.65/kg on steers rather than €3.60kg and €3.75/kg on heifers, representing an increase on last week.
Factories are trying hard to hold this line through sweeteners, like transport being offered, to get sales.
Farmers with really suitable cattle and strong sellers have been able to get up to another 5c/kg out of factories, but anything beyond that is the exception.
The IFA has said that, with grass cattle gone and factories struggling to get cattle, a €3.70kg base on steers and €3.80/kg base on heifers is achievable.
A strengthening sterling
Market conditions are favourable at present with sterling strengthening since the US election, making sales to the UK that bit easier while Northern Ireland is relatively unaffected, with the majority of their sales within the sterling area.
Cull cows
Cow trade remains similar, though it is important to sell to factories that are actively looking to buy cows as those that turn up at factories who are not particularly active cow buyers, are often paying several cents per kilo below those that are.
O graded cows should be aiming for €3.10/kg, with Rs selling anywhere between €3.10/kg and €3.25 and the few U graded cows being paid up to €3.30/kg.
At the other end, plainer P+3 grading cows are in the range of €2.85/kg to €2.95/kg while P2s are getting €2.50/kg to €2.60/kg and P1s out of the parlour can be as low as €2.00/kg but as high as €2.30/kg.
A success story at the moment is bulls up to 24 months making €3.65/kg at factories for O+ grades and €3.75/kg for R’s, better than steers in many cases. Under sixteen month bulls are making the same as steers on the grid, €3.65/kg.
Northern Ireland trade
Despite the movement in sterling over the past week, beef is relatively unaffected as the bulk of Northern Irish sales are within the sterling zone.
Strong prices continue with quotes in the range of £3.38/kg (€4.12/kg) to £3.44/kg (€4.20/kg), but deals above quote are frequently available paying anything up to 10p/kg above this for specialised lots.
There has been a levelling off in the trade in Britain where prices ranged from £3.74/kg in Scotland to £3.51/kg average on R3 steers for the rest of Britain.
Conclusion
With stocks being built for Christmas orders, a strong manufacturing trade and Irish prices now lagging behind the EU average, farmers are expecting to see some upward movement in cattle. However despite factories looking to buy they are reluctant to pay much more money.
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