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The differential in prices paid to producers continues to widen. A small number of plants are still trying to open steer quotes at a base of €3.85/kg, while the majority of producers are securing a base of €3.90/kg with greater ease.
Factory agents are trying to curtail upward price movement across the board and are keen to tie into large batches to take the pressure of sourcing additional supplies.
Producers trading at the top end of the market have secured a base of €3.95/kg for steers, while a base of €4.00/kg has been paid in select cases.
A similar situation is present for heifers, with a high percentage trading at a base of €4.00/kg and smaller numbers trading at the top of the market at a base of €4.05/kg to €4.10/kg.
Demand is firm for Angus stock, with flat-priced deals reported in the region of €4.00/kg for steers and €4.10/kg for heifers.
Again, producers with more selling power are digging in for slightly more.
Cows have been a big beneficiary in the recent upturn in the trade, with prices rising 20c/kg to 30c/kg, while a wide differential has also developed.
P+3 grading cows are trading from €2.90/kg to €3.05/kg, while O grading cows range on average from €3.05/kg to €3.25/kg.
Prices at the higher end of the market are being secured for large batches or by specialist finishers who are starting to move significant numbers.
Demand has intensified for top-quality R and U grading cows, which are in tight supply. R grades range from €3.30/kg to €3.45/kg, but more has been paid. Likewise, U grades range from €3.25/kg to over €3.50/kg for young fleshed lots.
The bull trade has also improved. Penalties on weight and fat cover have lessened on bulls in general, but still remain in place for bulls less than 16 months. Most plants are operating a carcase weight limit of 400kg, but many producers are capable of negotiating no cuts where a small percentage exceed this weight, with an upper weight limit of 420kg to 430kg.
Bulls over 16 months are moving at a price range of €3.75/kg to €3.90/kg for U grades, while R grades are selling from €3.70/kg to €3.80/kg.
There is still a significant number of bulls aged over 24 months coming on stream, with 960 head processed last week. Both heavy and overage bulls face price deductions of 10c/kg to 20c/kg on average. This is more lenient than the heavy cuts rising to 30c/kg to 50c/kg that were in place a few weeks ago.
It must also be remembered that significant price differences persist between plants.
Throughput is said to be slightly better this week after last week’s shorter four-day week recorded throughput of 29,697 head. This was a reduction of 1,863 head on the week previous, with the kill comprising of 9,653 steers, 9,245 heifers, 6,350 cows, 3,387 young bulls, 960 aged bulls and 192 calves. The kill was 192 head higher than the corresponding week in 2018, with year-to-date throughput running 36,285 head higher.
Northern trade
The northern trade is solid, although, like Irish factories, some agents are trying to take the sting out of the trade.
The general opening U-3 base quote for steers and heifers is £3.34/kg to £3.38/kg or the equivalent of €3.85/kg to €3.89/kg at 86.8p to the euro and €4.06/kg to €4.10/kg including VAT at 5.4%.
Regular sellers continue to negotiate prices in the low-£3.40s, with top returns to £3.50/kg (€4.25/kg). The AHDB reports average British R4L steers up 1.8p to £3.59/kg (€4.36/kg) with heifers steady at 1p/kg lower.
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