Throughput in beef factories remains high, with last week’s kill reducing by 368 head, but still standing at 35,651 head. It is apparent that factories do not want numbers to ease back significantly.

Many agents have been given the green light to compete with a bit more intensity to try to secure supplies. This is leaving more producers securing a base of €3.75/kg for steers and €3.85/kg for heifers.

There are still deals being completed at a 5c/kg lower base, but agents are finding it harder to secure larger batches in particular at this price.

There are also reports of some regular sellers trading at the top end of the market securing a base of €3.90/kg for heifers.

A firm appetite is also reflected in plants working their way through higher numbers of out-of-spec and overage bulls.

Last week’s young bull kill of 4,585 head was 238 down on the previous week, but is still 1,310 head above the corresponding week in 2018.

The greater difference in the last two weeks is in bulls aged over 24 months, with throughput of 1,279 head recorded last week.

Demand remains variable between plants though and this is leading to an even greater differential in prices paid.

There are still significant numbers of overage and overweight bulls trading at a price range of €3.00/kg to €3.20/kg, but sellers with small numbers traded as part of a larger batch of in-spec bulls are having much more success in limiting price penalties to 10c/kg to 25c/kg.

Bulls less than 24 months are trading in the main from €3.55/kg to €3.65/kg for U grades. Again, penalties on overage bulls are easing in some plants, but most are still operating with cuts of 10c/kg to 20c/kg for bulls exceeding the desired carcase weight.

There is also variability in this regard, with some implementing cuts at 430kg to 440kg carcase weight and other plants doubling up cuts where bulls exceed 470kg to 480kg.

R grading bulls are trading from €3.45/kg to €3.55/kg on average, while O grading bulls range in the main from €3.20/kg to €3.30/kg. In cases, regular sellers are securing 5c/kg to 10c/kg higher for well-fleshed O=/+ grading bulls.

Those less than 16 months and trading on the grid are moving at a base of €3.70/kg to €3.75/kg.

Cow prices are firm, with good demand present at a price range of €2.70/kg to €2.85/kg for P+3 grades, while O grades are trading in the main from €2.80/kg to €2.90/kg, with select deals completed 5c/kg to 10c/kg higher.

Meanwhile, R grades are generally in the range of €3.00/kg to €3.10/kg, but up to 5c/kg to 10c/kg higher is being paid for top-quality cows. Likewise, U grades range from €3.20/kg all the way to €3.40/kg.

The latest AIM data for 1 March shows 14,000 fewer beef cattle in the 24- to 30-month age bracket.

This has been driven by higher throughput to date, with the kill running 39,250 head above 2018 levels. There is 22,704 more cattle in the 18- to 24-month age bracket, while longer-term supplies will tighten, with 72,977 fewer cattle in the six- to 12-month age category.

Northern trade

The northern trade is steady, with a firm tone to the trade.

The U-3 base quote for steers and heifers remains at a range of £3.32/kg to £3.36/kg in most plants or the equivalent of €3.85/kg to €3.91/kg at 86.2p to the euro and €4.06/kg to €4.12/kg including VAT at 5.4%.

Deals at the higher end of the market continue to a base of £3.40/kg, with top returns rising to the mid-£3.40s

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Northern View: positive signs as beef quotes edge up