The marked change in factory activity since before the Christmas break continues.
While factories were eager to handle as many cattle as they could as 2017 drew to a close, their purchasing activity in the last two weeks has been much more controlled.
Limiting throughput has also aided factories in applying downward price pressure on the trade.
Many plants moved at the end of last week to take another 5c/kg off prices, with the steer base reducing to €3.95/kg, while heifers were quoted a base of €4.05/kg.
The success of this move has been variable.
Some plants have stuck tight to the lower quote, while others are trying to purchase cattle at this level from producers with lower negotiating power and paying regular suppliers or those with large numbers on hands a base of €4.00/kg for steers and €4.10/kg for heifers to safeguard throughput.
Cow and bull prices remain steady, with many plants eager to kill more cows. This explains last week’s kill rising by 2,752 head to 32,985, with cow throughput increasing by 1,728 head to 6,377.
Throughput
The other significant change was young bull throughput rising by 488 head to reach a kill of 5,661, while heifer throughput increased by 446 head to 10,286.
The varied activity by different plants in the cow market continues to lead to a differential in price of 10c/kg to 15c/kg between the most and least active plants.
P+3 grading cows are trading on average from €3.15/kg to €3.30/kg, while O grading cows range from €3.30/kg to €3.45/kg, with higher numbers and heavier carcase beef-bred cows in many cases securing the higher prices.
There are a number of factories very active for better-quality R and U grading cows and this is evident in prices paid.
R grades are trading anywhere from €3.50/kg to €3.65/kg, with some sellers securing a flat price of €3.70/kg for heavy U and R grading cows.
R and U grading bulls are selling in the main for €4.00/kg and €4.10/kg respectively.
Again, there are plants willing to do flat-priced deals to secure sales, with €4.10/kg paid for mixed lots comprising mainly U grading bulls.
O grading bulls are trading from a starting price of €3.80/kg where low numbers are involved or bulls are of poorer quality to €3.90/kg for well-fleshed O+ types.
Bulls less than 16 months and trading on the grid are selling on a base of €3.95/kg to €4.00/kg, with the higher base, in cases, coming with tighter specification and an upper carcase weight limit of 400kg to 420kg.
Northern trade
A similar situation is evident in Northern Ireland, with factories trying to ease the trade back.
Some plants are trying to offer opening U3- base quotes of £3.48/kg to £3.50/kg, which at an exchange rate of 88.7p to the euro equates to €3.92/kg to €3.94/kg (equivalent of €4.13/kg to €4.15/kg including VAT at 5.4%).
However, most deals are being completed at a base of £3.52/kg to £3.54/kg (€4.18/kg to €4.21/kg incl VAT), with top returns rising to the low- to mid-£3.60s.
The number of cattle exported north for direct slaughter in the last week was recorded at just 43 head.
This compares with 195 head in the same week in 2017, which is also well below previous years’ levels.
The number of cattle exported from Northern Ireland to southern plants was much higher at 260 head.
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.
Read more
Save our sucklers: sign our open letter
Mart trade: numbers and prices up on last year so far
€180/hd price gap between factories
Cattle price pressure is 'opportunistic'
The marked change in factory activity since before the Christmas break continues.
While factories were eager to handle as many cattle as they could as 2017 drew to a close, their purchasing activity in the last two weeks has been much more controlled.
Limiting throughput has also aided factories in applying downward price pressure on the trade.
Many plants moved at the end of last week to take another 5c/kg off prices, with the steer base reducing to €3.95/kg, while heifers were quoted a base of €4.05/kg.
The success of this move has been variable.
Some plants have stuck tight to the lower quote, while others are trying to purchase cattle at this level from producers with lower negotiating power and paying regular suppliers or those with large numbers on hands a base of €4.00/kg for steers and €4.10/kg for heifers to safeguard throughput.
Cow and bull prices remain steady, with many plants eager to kill more cows. This explains last week’s kill rising by 2,752 head to 32,985, with cow throughput increasing by 1,728 head to 6,377.
Throughput
The other significant change was young bull throughput rising by 488 head to reach a kill of 5,661, while heifer throughput increased by 446 head to 10,286.
The varied activity by different plants in the cow market continues to lead to a differential in price of 10c/kg to 15c/kg between the most and least active plants.
P+3 grading cows are trading on average from €3.15/kg to €3.30/kg, while O grading cows range from €3.30/kg to €3.45/kg, with higher numbers and heavier carcase beef-bred cows in many cases securing the higher prices.
There are a number of factories very active for better-quality R and U grading cows and this is evident in prices paid.
R grades are trading anywhere from €3.50/kg to €3.65/kg, with some sellers securing a flat price of €3.70/kg for heavy U and R grading cows.
R and U grading bulls are selling in the main for €4.00/kg and €4.10/kg respectively.
Again, there are plants willing to do flat-priced deals to secure sales, with €4.10/kg paid for mixed lots comprising mainly U grading bulls.
O grading bulls are trading from a starting price of €3.80/kg where low numbers are involved or bulls are of poorer quality to €3.90/kg for well-fleshed O+ types.
Bulls less than 16 months and trading on the grid are selling on a base of €3.95/kg to €4.00/kg, with the higher base, in cases, coming with tighter specification and an upper carcase weight limit of 400kg to 420kg.
Northern trade
A similar situation is evident in Northern Ireland, with factories trying to ease the trade back.
Some plants are trying to offer opening U3- base quotes of £3.48/kg to £3.50/kg, which at an exchange rate of 88.7p to the euro equates to €3.92/kg to €3.94/kg (equivalent of €4.13/kg to €4.15/kg including VAT at 5.4%).
However, most deals are being completed at a base of £3.52/kg to £3.54/kg (€4.18/kg to €4.21/kg incl VAT), with top returns rising to the low- to mid-£3.60s.
The number of cattle exported north for direct slaughter in the last week was recorded at just 43 head.
This compares with 195 head in the same week in 2017, which is also well below previous years’ levels.
The number of cattle exported from Northern Ireland to southern plants was much higher at 260 head.
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.
Read more
Save our sucklers: sign our open letter
Mart trade: numbers and prices up on last year so far
€180/hd price gap between factories
Cattle price pressure is 'opportunistic'
This is a subscriber-only article
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