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Factory agents remain very active in sourcing slaughter-fit stock, with competition particularly strong for heifers. Many producers are holding out for a base of €4.00/kg, but as yet most factories are resisting upward price movement, with a base of €4.00/kg only reported as being paid in minor instances. These reports are also confined to some of the independent plants, with the main groups said to be most resilient. The majority of heifers are therefore moving at a base of €3.95/kg, with some plants willing to pay a base of €3.98/kg or subsidise transport as opposed to paying the €4.00/kg base.
The same high level of competition is not present for steers, although demand is firm. Steers continue to trade on a base of €3.85/kg, with very small numbers 5c/kg higher for specialist finishers or those with higher numbers on offer and 5c/kg lower for sellers with poor negotiating power or out-of-spec stock.
Bull throughout continues on its seasonal downward trend
Demand is also strong for Angus and Hereford cattle and this extends to short-keep stores, with factory buyers competing in mart sales and sourcing cattle direct off farms. Prices range from €1.90/kg to €2.10/kg liveweight on average.
Tight bull supplies
Bull throughout continues on its seasonal downward trend. R grades are moving in the main from €3.80/kg to €3.85/kg, with U grades from €3.90/kg to €3.95/kg at the top of the market. This excludes bulls trading on the grid, with those less than 16 months selling on a base of €3.80/kg to €3.85/kg. This excludes the 12c/kg quality payment scheme bonus where applicable.
Friesian bulls are the minority in bull throughout, selling from €3.60/kg to €3.65/kg for good-quality O grading bulls and a flat price of €3.70/kg for sale groups containing some R grades at the higher end of the market.
The cow trade remains brisk in factory and mart sales. There is no change in prices paid, with P+3 grades ranging from €2.90/kg to €3.05/kg, while O grades range from €3.10/kg to €3.20/kg. These are typical prices and sellers with high numbers are securing 5c/kg to 10c/kg above normal prices. R grades are selling from €3.30/kg to €3.45/kg, with U grades rising to €3.55/kg and 5c/kg higher in cow-specialist plants.
Weaker British trade
The British trade remains under pressure, with R4L heifer prices dropping to £3.55/kg to £3.57/kg. This is the equivalent of €4.30/kg to €4.33/kg at 87p to the euro and 5.4% VAT. R4L steer prices are holding 2p/kg higher.
In a recent market report, the AHDB reported cow prices benefitting from the weaker sterling and subsequent greater competitiveness in EU markets. The report showed cow prices rising 17p/kg (20c/kg) since the turn of the year, with O4L cows now ranging from £2.50/kg to £2.55/kg (€3.03/kg to €3.09/kg).
Live exports of calves continue to perform well and for the week ending 12 March 2017 exceeded 10,000 head for the first time since March 2014. The Netherlands and Spain remain the two key markets, but the Belgian market has also started importing calves from Ireland again and is providing another outlet.
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