Factories have threatened a reduction in beef prices for several weeks, but, with numbers steady and demand strong, were unable to ease prices back.

In recent days, they have taken advantage of unfavourable weather to take control of the trade. The trade is most vulnerable in the west and northern half of the country, where torrential rainfall and deteriorating ground conditions have witnessed more cattle coming on to the market. Base quotes for steers have fallen 5c/kg to 10c/kg on the week, with quotes in the west at €3.75/kg.

Plants quoting for later in the week or the start of next week are quoting a base of €3.70/kg, with some plants pushing out cattle for three to five days.

Quotes in the east have not fallen to the same extent.

Grass supplies are also good, but, unlike the west and north, ground is good and numbers are tighter. As such, many sellers are still securing a base of €3.80/kg, although some plants are trying to talk the trade back to a base of €3.75/kg.

The steer kill rose 910 head this week to a total of 15,160. This was the main driver in the beef kill rising from 31,491 to 32,440. Heifer throughput has held steady in recent weeks and, as such, continues to generate more competition.

Base quotes in the west are generally at €3.85/kg, but there are still sellers handling higher numbers of choice lots commanding a similar quote to the east of €3.90/kg.

Good cows firm

The trade for good-quality cows is holding solid, with no increase in supplies.

R grading continental cows continue to sell from €3.30/kg to €3.40/kg, with U grades rising to €3.45/kg to €3.50/kg.

There is a marginal increase in some areas in freshly dried off dairy cows coming on to the market.

Sellers should ask about penalties on under-fleshed cows before killing, as some plants are imposing cuts of 30c/kg to 40c/kg for under-fleshed lots. P+3 grading cows are trading from €2.85/kg to €3.00/kg, with fleshed O grades from €2.95/kg to €3.10/kg.

Low bull kill

The bull kill eased back to 2,075 head, the lowest of the year. Prices are relatively stable for bulls killing above 16 months, with many producers now trading having greater negotiating power.

R grades have slipped to €3.75/kg in some cases, but most are moving at €3.80/kg, while U grades are trading from €3.85/kg to €3.90/kg at the higher end of the market. This excludes producer bonuses.

Friesian bulls are trading from €3.60/kg to €3.70/kg in the main, with good-quality O+/R- bulls also reported as achieving €3.75/kg. There is some price pressure on bulls less than 16 months, with the base quote being pulled back in line with steer quotes.

NI & British trade

The northern and British trade is in contrast to the south. Throughput in the North is rising, with a similar regional divide driven by rainfall levels. This has witnessed some plants hold what they are willing to pay to the U-3 quote for steers and heifers of £3.34/kg to £3.40/kg (€4.17/kg to €4.25/kg incl VAT).

There is still scope to negotiate above quoted prices, with sellers continuing to secure 4p/kg to 8p/kg higher for choice lots. As high as £3.50/kg (€4.32/kg) has been secured this week.

The British trade continues to strengthen, rising 2p/kg to 4p/kg, pushing R4L steers and heifers to £3.60/kg to £3.65/kg (€4.50/kg to €4.56/kg including VAT at 84p to the euro). Supplies remain tight and are forecast to remain relatively tight for the coming weeks.

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