Last week’s beef kill reduced by 1,515 head, with 327 fewer calves and 1,188 less cattle processed.
Factories appear content to operate at the lower numbers, with no extra bite entering the trade. Steers processed so far this week are moving at a base of €3.75/kg, while heifers are trading on a base of €3.85/kg.
Factories have also taken steps to try to reduce prices, with a number of plants testing farmer resolve with 5c/kg lower quotes.
This is being rolled out on an inconsistent basis, with some agents talking about prices coming back 5c/kg but still keen to secure sales and purchasing at the base prices listed above.
As such, reports suggest there have not been big numbers purchased to date at the lower quotes.
Supplies are likely to continue to tighten, which should hopefully help the producers’ cause.
Factories point to weaker trading conditions in the UK and continued Brexit uncertainty as contributing to price pressure. Any reduction in price will be a heavy blow to beef producers who are already facing significant losses.
Meanwhile, cows are steady, with agents using mart sales to supplement throughput. Last week’s cow kill of 6,724 is 115 head down on the previous week and 730 lower than the corresponding week in 2018.
Price variation remains between and even within plants, depending on the negotiating power of the seller and activity of the plant in the trade. P+3 grading cows are trading from €2.65/kg to €2.80/kg, with O grades picking up here and selling to a top of €2.95/kg to €3.00/kg.
R grading cows are trading in general from €3.00/kg to €3.10/kg, with heavy R grading cows and young cows selling to €3.15/kg to €3.20/kg. U grading cows range in price from €3.20/kg to €3.35/kg or €3.40/kg.
There is also significant variation in young bull prices. At the top of the market, U grading bulls are trading from €3.60/kg to €3.70/kg, with a number of plants quoting back to €3.50/kg.
R grades range from €3.40/kg to €3.60/kg, with O grading bulls ranging from €3.20/kg to €3.40/kg for underage lots and back to as low as €3.00/kg to €3.10/kg for bulls aged in excess of 24 months.
Price penalties also remain in place for heavy bulls, with cuts of 10c/kg to 20c/kg for bulls delivering carcase weights in excess of 440kg.
Bulls less than 16 months and trading on the grid are being quoted a base of €3.70/kg to €3.75/kg, with varying levels of interest between plants and many imposing price penalties for bulls exceeding 400kg carcase weight.
AIM update
The latest AIM report for 1 February shows 10,017 fewer males in the 24- to 30-month age category, with 298 extra beef-sired heifers compared with 1 February 2018.
There are 20,868 extra beef-sired heifers in the 18- to 24-month age category and 3,936 extra males. Longer-term supplies will tighten, with 48,124 fewer males in the six- to 12-month age bracket and 25,078 less beef-sired heifers.
Weaker NI trade
The trade in Northern Ireland remains under pressure. Plants have dropped their U-3 steer and heifer base quote to £3.24/kg to £3.30/kg or the equivalent of €3.76/kg to €3.83/kg at 86.2p to the euro and €3.98/kg to €4.04/kg VAT inclusive at 5.4%.
The latest AHDB price report shows last week’s British steer price falling 3.5p/kg, with heifers down 2.6p/kg. This leaves R4L steers averaging £3.49/kg (€4.27/kg) and heifers 2p/kg lower.
Read more
Northern View: factories shave 2p/kg off base quotes but hogget base quotes rise
Last week’s beef kill reduced by 1,515 head, with 327 fewer calves and 1,188 less cattle processed.
Factories appear content to operate at the lower numbers, with no extra bite entering the trade. Steers processed so far this week are moving at a base of €3.75/kg, while heifers are trading on a base of €3.85/kg.
Factories have also taken steps to try to reduce prices, with a number of plants testing farmer resolve with 5c/kg lower quotes.
This is being rolled out on an inconsistent basis, with some agents talking about prices coming back 5c/kg but still keen to secure sales and purchasing at the base prices listed above.
As such, reports suggest there have not been big numbers purchased to date at the lower quotes.
Supplies are likely to continue to tighten, which should hopefully help the producers’ cause.
Factories point to weaker trading conditions in the UK and continued Brexit uncertainty as contributing to price pressure. Any reduction in price will be a heavy blow to beef producers who are already facing significant losses.
Meanwhile, cows are steady, with agents using mart sales to supplement throughput. Last week’s cow kill of 6,724 is 115 head down on the previous week and 730 lower than the corresponding week in 2018.
Price variation remains between and even within plants, depending on the negotiating power of the seller and activity of the plant in the trade. P+3 grading cows are trading from €2.65/kg to €2.80/kg, with O grades picking up here and selling to a top of €2.95/kg to €3.00/kg.
R grading cows are trading in general from €3.00/kg to €3.10/kg, with heavy R grading cows and young cows selling to €3.15/kg to €3.20/kg. U grading cows range in price from €3.20/kg to €3.35/kg or €3.40/kg.
There is also significant variation in young bull prices. At the top of the market, U grading bulls are trading from €3.60/kg to €3.70/kg, with a number of plants quoting back to €3.50/kg.
R grades range from €3.40/kg to €3.60/kg, with O grading bulls ranging from €3.20/kg to €3.40/kg for underage lots and back to as low as €3.00/kg to €3.10/kg for bulls aged in excess of 24 months.
Price penalties also remain in place for heavy bulls, with cuts of 10c/kg to 20c/kg for bulls delivering carcase weights in excess of 440kg.
Bulls less than 16 months and trading on the grid are being quoted a base of €3.70/kg to €3.75/kg, with varying levels of interest between plants and many imposing price penalties for bulls exceeding 400kg carcase weight.
AIM update
The latest AIM report for 1 February shows 10,017 fewer males in the 24- to 30-month age category, with 298 extra beef-sired heifers compared with 1 February 2018.
There are 20,868 extra beef-sired heifers in the 18- to 24-month age category and 3,936 extra males. Longer-term supplies will tighten, with 48,124 fewer males in the six- to 12-month age bracket and 25,078 less beef-sired heifers.
Weaker NI trade
The trade in Northern Ireland remains under pressure. Plants have dropped their U-3 steer and heifer base quote to £3.24/kg to £3.30/kg or the equivalent of €3.76/kg to €3.83/kg at 86.2p to the euro and €3.98/kg to €4.04/kg VAT inclusive at 5.4%.
The latest AHDB price report shows last week’s British steer price falling 3.5p/kg, with heifers down 2.6p/kg. This leaves R4L steers averaging £3.49/kg (€4.27/kg) and heifers 2p/kg lower.
Read more
Northern View: factories shave 2p/kg off base quotes but hogget base quotes rise
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