There is no big bounce in the trade in the last full week of processing before the Christmas break.

Steers are trading on a mixed base of €3.50/kg to €3.55/kg. A high percentage of heifers are trading on a base of €3.55/kg, with select deals completed 5c/kg higher at a base of €3.60/kg. There are isolated deals being completed 5c/kg higher, with some large-scale finishers utilising greater negotiating power, but by and large the trade is steady.

Some agents report tighter supplies which is reflected in last week’s kill reducing by 1,773 head to 38,192. This was driven by 1,332 fewer steers, 631 fewer heifers and the cow kill reducing marginally by 81 head. The young bull kill in contrast increased by 363 head to reach throughput of 4,980.

Most plants are only slaughtering on Monday and Friday next week, with a significant percentage of next week’s kill supplied by the same finishers every year and already sorted.

Weight limits continue to be imposed to varying degrees, with as much variability within plants as across plants.

Where carcase weight limits are being enforced the starting point is 400kg to 420kg, with some allowances given without imposing penalties to 440kg to 450kg. The producer-processor relationship also has a big bearing but if in doubt check before sending animals.

There has been some upward movement in the trade for lesser grade cows in recent weeks with R grading cows finding it hard to advance above €3.00/kg. Regular sellers are in cases securing an extra 5c/kg to 10c/kg. P+3 grading cows are trading anywhere from €2.60/kg to €2.75/kg, with O grades averaging from €2.75/kg to €2.85/kg.

R grading bulls are trading from €3.40/kg to €3.50/kg, with a high percentage moving at the midway point of €3.45/kg. Likewise, U grading bulls are trading from €3.50/kg to €3.60/kg, while O grading bulls range from €3.20/kg to €3.35/kg with carcase weight and fat cover influencing prices paid.

Factories in Northern Ireland started the week trying to talk prices back. It is clear, however, that tight supplies are preventing this from gaining traction.

U-3 base quotes remain at £3.30/kg to £3.36/kg, while returns for R grading steers and heifers average around £3.36/kg to £3.38/kg.

With sterling easing to 85p to the euro, this equates to €3.95/kg to €3.98/kg and €4.17/kg to €4.19/kg including VAT at 5.4%. Prices are similar to the average British price.

Exports to NI

The number of cattle moving north for direct slaughter has held steady in recent weeks at a range of 350 to 400 head. Factories servicing the wholesale and food service trade are the main buyers. They have been more active in recent months, with a wider differential between prices north and south of the border increasing their appetite.

Last week’s exports of 381 head brings the total number moving north for direct slaughter to 12,999 head for 2019. This is an increase of 82 head on the corresponding week in 2018 and a yearly increase of 6,009 head. The number of cattle moving in the opposite direction for direct slaughter stands at 4,787 head, a reduction of 3,476 on 2018 levels.

Looking at the number of cattle exported to Northern Ireland farms, 18,319 head have moved to-date in 2019. This compares to 17,358 for the full year in 2018. Exports can be broken down into 11,361 females aged over six months, 4,991 calves and 1,967 males aged over six months.