The beef kill continues to run well ahead of normal levels for the time of year.

Agents report cattle finished off grass coming on stream in greater number.

This is coinciding with a seasonal increase in cow and young bull throughput and ultimately leaving factories in a stronger purchasing position with demand exceeding supply.

Base quotes

Some plants are actively trying to reduce their base quote for steers and heifers by 5c/kg. This is leaving steers trading at a base of €3.85/kg to €3.90/kg with heifers on a base of €3.95/kg €4.00/kg.

The higher quotes have been harder to secure since the end of last week and are becoming more confined to specialist finishers and producers with greater negotiating power.

The increase in steers, heifers and cows has tempered factory appetite for bulls.

There is a differential of 5c/kg to 10c/kg between prices paid in factories with varying levels of interest in young bulls.

Higher end

At the higher end of the market a base of €3.80/kg is being secured, but plants with less interest in bulls are quoting a 5c/kg to 10c/kg lower base and, in cases, not overly concerned if they secure the deal.

Weight restrictions have also reappeared and are being enforced much more stringently, with carcase weight limits ranging from 400kg to 430kg.

Above this, some plants are penalising with a failure to pay the 12c/kg quality payment scheme bonus, with some inflicting heavier cuts on bulls they deem excessively heavy and refusing to base payment on the grid structure.

This also depends on the producer-processor relationship.

Bulls aged over 16 months but less than 24 months are being purchased at a price range of €3.70/kg to €3.75/kg for Rs and €3.80/kg to €3.85/kg for Us.

Sticky northern trade

Producers in Northern Ireland are also facing downward price pressure.

Many plants have reduced their U-3 base quote to £3.30/kg to £3.36/kg.

Sterling continues to lose ground on the euro and on Monday evening had weakened to 89.1p. This puts these quotes at the equivalent of €3.70/kg to €3.77/kg and €3.91/kg to €3.97/kg including VAT at 5.4%.

Some plants are quoting 2p/kg to 4p/kg lower, but most cattle are moving within the higher quote range.

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