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Cow throughput has maintained the sharp jump from a fortnight ago, with last week’s kill rising 180 head to 8,481.
Factory buyers are attempting to apply pressure on prices. In some cases, sellers with lower numbers and less negotiating power are being faced with 10c/kg lower quotes.
O grading Friesians are being quoted a price of €3.40/kg to €3.50/kg, with P+3 grades 5c/kg to 10c/kg lower.
R grades are moving in general from €3.55/kg to €3.65/kg, with regular sellers in a stronger negotiating position continuing to command higher. This is being reflected in the strong prices in mart sales.
Some finishers comment that factories are taking advantage of the time of year and are not reflecting the strong demand in the market for manufacturing beef.
IFA livestock chair Angus Woods said: “A concerted move by the factories to pull cow prices has not succeeded, with plants having to pay last week’s prices to get numbers.”
Steer and heifer prices
Steer and heifer throughput has tightened marginally and reflects the gap in throughput that is likely to exist until numbers start coming off grass in any significant numbers.
More sellers are having success in securing a base of €4.15/kg, while, at the higher end of the market, those with higher numbers are securing a base of €4.18/kg to €4.20/kg.
A similar situation is evident with heifers. The majority are selling on a base of €4.25/kg, but there are some selling at a base of €4.28/kg to €4.30/kg. This gradual rise across base prices is resulting in average prices rising slowly by an average of 2c/kg to 3c/kg.
Bull prices are slow to lift, which is likely due in part to rising numbers and the higher cow kill.
R and U grades are moving mainly at €4.05/kg and €4.15/kg, respectively. There are specialised finishers securing bonus payments above this range, with negotiating power having a big effect on price.
Agents remain sticky on letting the base for bulls less than 16 months exceed €4.05/kg, with very few sellers achieving more than this.
Robust northern trade
The trade in the North continues in good stead. U-3 base prices for steers and heifers have increased 2p/kg to 4p/kg and now range from £3.58/kg to £3.64/kg, which is the equivalent of €4.34/kg to €4.40/kg at the weaker sterling exchange rate of 87p to the euro and including 5.4% VAT.
Regular sellers with greater negotiating power remain in a position to secure returns into the high-£3.60s. Cow prices are also in contrast with the south, with O grades lifting by 4p/kg to 6p/kg in some plants. Prices range from £2.70/kg to £2.80/kg or €3.26/kg to €3.38/kg.
Live exports
Meanwhile, the total number of cattle exported live up until week ending 21 May 2017 stands at 116,225. This compares very favourably to the same period in 2016, with exports running 34,961 head or 43% above last year’s levels.
The drivers of this change are 14,289 extra cattle exported to the Netherlands (39,991), 10,458 more to Spain (35,863), 5,199 to Belgium and 5,945 extra to countries outside the EU, namely Turkey and Libya.
It is important to look at exports in previous years to see the full extent of change. Exports are similar to 2015 and 2013 levels and over 20,000 behind 2014 levels.
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