Last week’s beef kill experienced a significant jump to 31,253 head. The extra 1,929 cattle processed took the pressure off factories to increase prices, with most sellers handling small numbers continuing to trade on a base of €4.10/kg for steers and €4.20/kg for heifers.
Demand remains very strong though, and with agents careful not to lose out on any stock, they are prepared to offer regular sellers and specialised finishers higher prices.
Steer prices have been reported at the top of the market at a base of €4.12/kg to €4.15/kg, with more scope for those with heifers on hand to negotiate a base of €4.25/kg.
Reports from some agents suggest that numbers are finally starting to show signs of tightening, as shed-finished cattle disappear. This should strengthen the hand of sellers.
However, there is also the prospect of some plants managing throughput by using feedlot cattle to supplement numbers. The potential numbers on hand varies between plants, with ABP having access to the highest numbers. This is reflected in their buyers’ continued activity in mart and direct farm sales, with Angus the main cattle purchased.
Higher scope
The continued increase in British beef prices is providing more scope for Irish exports to compete and return a higher margin.
Average R4L prices have increased by 2p/kg in recent days, with average prices ranging from £3.65/kg to £3.68/kg. This is the equivalent of €4.47/kg to €4.51/kg including VAT at 5.4% and yesterday’s weaker exchange rate of 85.7p to the euro. This price range is over 40p/kg ahead of 2016.
Northern prices have closed the gap to British prices. Figures from the LMC show the latest average R3 price reported in Northern Ireland at £3.58/kg (€4.40/kg including VAT). This is 2p/kg higher than the price reported in southern England, on a par with midlands and Welsh prices and 2p/kg lower than northern England. Prices in Scotland, at £3.73/kg (€4.58/kg) for R3 grading steers, continue to top prices.
This week’s northern quotes have also strengthened by 2p/kg to 3p/kg. Factories continue to enter the market at a U3- base entry quote of £3.56/kg to £3.60/kg (€4.38/kg to €4.43/kg), but regular sellers are securing prices rising to the mid- to high-£3.60s.
Strong sales of manufacturing beef continues to help demand for cows and bulls. Plants most active in the cow trade continue to pay well over competing plants with less interest.
Prices range from €3.35/kg to €3.45/kg for P+3 grades, with O grades selling from €3.50/kg to over €3.60/kg. Heavy R and U grading cows are an excellent trade, selling from €3.60/kg to €3.75/kg. Sellers struggling to move small numbers at higher prices should be mindful of high competition in mart sales.
The bull kill is now a small component of the weekly kill, at about 11% to 12% of throughput. Specialised finishers are delivering a high percentage of these and remain in a better negotiating position.
R grade bulls are selling from €4.00/kg to €4.05/kg, with U grades from €4.10/kg to €4.15/kg. Some specialist finishers are also securing bonus payments above this.
Some flat-priced deals for R and U grades have been negotiated at €4.10/kg to entice bulls forward.
Bulls less than 16 months and trading on the grid are selling on a base of €4.10/kg to €4.15/kg, with negotiating power again dictating prices.
Read more
Strong beef market favours farmers
Limited supply and strong demand means strong beef prices
Download the Irish Farmers Journal news app today and get the latest prices for all grades and all factories through the built-in Livestock Tool.
Last week’s beef kill experienced a significant jump to 31,253 head. The extra 1,929 cattle processed took the pressure off factories to increase prices, with most sellers handling small numbers continuing to trade on a base of €4.10/kg for steers and €4.20/kg for heifers.
Demand remains very strong though, and with agents careful not to lose out on any stock, they are prepared to offer regular sellers and specialised finishers higher prices.
Steer prices have been reported at the top of the market at a base of €4.12/kg to €4.15/kg, with more scope for those with heifers on hand to negotiate a base of €4.25/kg.
Reports from some agents suggest that numbers are finally starting to show signs of tightening, as shed-finished cattle disappear. This should strengthen the hand of sellers.
However, there is also the prospect of some plants managing throughput by using feedlot cattle to supplement numbers. The potential numbers on hand varies between plants, with ABP having access to the highest numbers. This is reflected in their buyers’ continued activity in mart and direct farm sales, with Angus the main cattle purchased.
Higher scope
The continued increase in British beef prices is providing more scope for Irish exports to compete and return a higher margin.
Average R4L prices have increased by 2p/kg in recent days, with average prices ranging from £3.65/kg to £3.68/kg. This is the equivalent of €4.47/kg to €4.51/kg including VAT at 5.4% and yesterday’s weaker exchange rate of 85.7p to the euro. This price range is over 40p/kg ahead of 2016.
Northern prices have closed the gap to British prices. Figures from the LMC show the latest average R3 price reported in Northern Ireland at £3.58/kg (€4.40/kg including VAT). This is 2p/kg higher than the price reported in southern England, on a par with midlands and Welsh prices and 2p/kg lower than northern England. Prices in Scotland, at £3.73/kg (€4.58/kg) for R3 grading steers, continue to top prices.
This week’s northern quotes have also strengthened by 2p/kg to 3p/kg. Factories continue to enter the market at a U3- base entry quote of £3.56/kg to £3.60/kg (€4.38/kg to €4.43/kg), but regular sellers are securing prices rising to the mid- to high-£3.60s.
Strong sales of manufacturing beef continues to help demand for cows and bulls. Plants most active in the cow trade continue to pay well over competing plants with less interest.
Prices range from €3.35/kg to €3.45/kg for P+3 grades, with O grades selling from €3.50/kg to over €3.60/kg. Heavy R and U grading cows are an excellent trade, selling from €3.60/kg to €3.75/kg. Sellers struggling to move small numbers at higher prices should be mindful of high competition in mart sales.
The bull kill is now a small component of the weekly kill, at about 11% to 12% of throughput. Specialised finishers are delivering a high percentage of these and remain in a better negotiating position.
R grade bulls are selling from €4.00/kg to €4.05/kg, with U grades from €4.10/kg to €4.15/kg. Some specialist finishers are also securing bonus payments above this.
Some flat-priced deals for R and U grades have been negotiated at €4.10/kg to entice bulls forward.
Bulls less than 16 months and trading on the grid are selling on a base of €4.10/kg to €4.15/kg, with negotiating power again dictating prices.
Read more
Strong beef market favours farmers
Limited supply and strong demand means strong beef prices
Download the Irish Farmers Journal news app today and get the latest prices for all grades and all factories through the built-in Livestock Tool.
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