The mood among winter finishers is downbeat, with all producers faced with lower farmgate prices than 12 months ago, while finishing costs are higher in most cases.

Steer and heifer prices are 20c/kg below the corresponding week in 2018, while bulls are down by an even greater level of anywhere between 30c/kg and 40c/kg and cows are running up to 40c/kg to 60c/kg lower.

Steer and heifer base quotes are unchanged at €3.75/kg and €3.85/kg respectively.

Last week’s heifer kill increased by 1,895 head and at 11,826 is quite unusual, as it has exceeded the steer kill of 11,308 head.

The higher heifer kill was the driver in the weekly kill increasing 846 head to reach 36,656, which is 3,400 ahead of the corresponding week in 2018.

There are longer-term signs of a tightening in numbers, but, at present, throughput remains strong.

Bull finishers are bearing the brunt of processing challenges.

There are difficulties arising on three fronts – delays in moving bulls in significant numbers, bulls at risk of going overage due to processing delays and penalties being imposed.

The higher number of bulls in the market and sluggish factory appetite have also put pressure on prices, with a significant differential opening between prices paid. This is reflected in the Department price table.

U grading bulls at the higher end of the market are trading from €3.75/kg to €3.80/kg, but there are prices quoted as low as €3.60/kg to €3.65/kg, with bulls not ticking the boxes or in plants with less interest in bulls faring worst.

Likewise, R grading bulls are trading on average from €3.60/kg to €3.70/kg, but as low as €3.50/kg to €3.55/kg is reported. The same trend is evident in Friesian bulls, with a differential of €3.35/kg to €3.55/kg.

The greatest difficulties is from producers looking to find a home for bulls.

Saying this, producers with long-standing relationships are also facing delays, with numerous reports of finishers with large numbers of bulls ready for slaughter moving small numbers on a weekly basis.

This is increasing the risk of bulls going overweight and overage, with plants imposing penalties of 10c/kg to 15c/kg on bulls exceeding the 24-month age limit.

Weight limits vary from 420kg to 460kg, with cuts of 10c/kg to 20c/kg now more common.

Bulls less than 16 months and exceeding a carcase weight of 420kg to 430kg are also being paid off the grid in many cases, with those hitting required spec generally trading on a base of €3.75/kg. Fat cover remains vital, with little leeway on bulls recording a fat score below 2+.

P+3 grading cows continue to average €2.60/kg to €2.70/kg, with O grades from €2.80/kg to €85/kg, while R grading cows range from €2.95/kg to €3.15/kg, with carcase weight having a significant influence.

Likewise, U grading cows range anywhere from €3.20/kg to €3.40/kg, with firm wholesale demand helping to keep a firmer floor under the trade.

NI trade solid

The northern trade continues as is, with U-3 base quotes for steers and heifers ranging from £3.40/kg to £3.44/kg.

Sterling continues to strengthen and at Wednesday’s exchange rate of 87p to the euro this equates to €3.91/kg to €3.95/kg and €4.12/kg to €4.17/kg including VAT at 5.4%.

There is still potential for regular sellers to negotiate 2p/kg to 6p/kg higher.

Specialist finishers are pushing top prices for steers to £3.50/kg, with heifers in cases breaching the £3.50/kg mark at the top of the market.

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Northern view: plants move to steady cattle quotes