Factory appetite remains strong, with agents working hard to source supplies.

Reports suggest last week’s throughput recovered somewhat with a higher kill expected, but many agents point to phones being quieter over the weekend.

There are differences in appetite between plants, based partly on the extent of their supplier base. This is leading to a variation in prices paid.

Base quotes

There are still reports of some factories trying to open base quotes for steers and heifers at a base of €3.85/kg and €3.95/kg respectively.

This is occurring in cases where breed bonus payments are involved, with plants trying to lower the overall cost.

This is also an issue with bulls less than 16 months, which will be discussed in more detail below.

A high percentage of steers are trading at a base of €3.90/kg, with regular sellers with greater negotiating power securing €3.95/kg.

There are some deals at the top of the market involving large batches being negotiated 5c/kg higher.

Similarly, heifers are trading from a base of €4.00/kg to €4.10/kg at the top end of the market.

Cows

The demand for cows and young bulls is being boosted by growing appetite for manufacturing beef as factories prepare for increased burger sales.

Cow prices range on average from €2.95/kg to €3.10/kg for P+3 grades, while O grades have moved upwards by 5c/kg more and range from €3.15/kg to €3.25/kg.

Meanwhile, R grades range from €3.30/kg to €3.45/kg, with U grades varying greatly depending on the purchasing plant and selling from €3.35/kg to €3.55/kg.

Bull prices

As mentioned earlier, there is also quite a bit of variation in bull prices.

The number of bulls less than 16 months and trading on the grid is rising gradually, but demand varies between plants.

Some factories are offering opening quotes of €3.80/kg, while a high percentage are trading on a base of €3.85/kg and specialist finishers are securing a base of €3.90/kg or slightly higher.

Bulls aged over 16 months but under 24 months are averaging €3.80/kg to €3.85/kg for R grades and €3.90/kg to €3.95/kg for U grades.

€100m support package

The question on nearly every beef producer’s lips is how the €100m support package is going to be paid out.

There is no further information on this yet, apart from Commissioner Hogan explaining that that decision will be down to the Irish Government.

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