Upward momentum in the beef trade this spring has been stop-start, with small price lifts followed by factories then moving quickly to curtail upward movement.
Factories know that at some stage in the very near future they will lose the upper hand in negotiations, with drafting of significant numbers of grass-finished cattle pushed well out into June and July.
While last week’s kill reduced by 1,349 head, it was still well above normal for the time of year at 33,594.
However, there are signs of factories’ grasp on the beef trade weakening.
Agents that were pushing out large groups of cattle to better manage throughput are this week more anxious to get cattle moving, with prices creeping upwards despite their best efforts.
Sellers competing at the top of the market are having some success in negotiating a base of €4.10/kg for steers, while there are higher numbers of sellers moving off a base of €4.00/kg and securing €4.05/kg.
All plants are willing to exceed quoted prices when offered the chance to compete for large batches.
A similar trend is evident for heifers, with more cattle trading on a base of €4.15/kg and a base of €4.18/kg to €4.20/kg at the top of the market.
The cow trade remains the standout performer this spring, with prices continuing to run 20c/kg to 30c/kg above 2017 levels.
P+3 grading cows are selling anywhere from €3.30/kg to €3.45/kg, with O grades from €3.40/kg to €3.60/kg.
The strength of the trade is evident in marts where agents and feeders are locking horns for slaughter-fit cows.
R grading cows are trading, in general, from €3.60/kg to €3.70/kg, but specialist plants have paid up to €3.80/kg and higher for heavy R and U grading cows.
There is also signs of bull prices edging upwards, with a couple of plants paying a top price of €4.20/kg for U grading bulls.
The general trade is €4.10/kg to €4.15/kg for U grades and €4.05/kg for R grades, but sellers with numbers should note a strengthening in the trade.
Friesian bulls remain a strong trade relative to continental bulls, with prices at the lower end of the market starting at €3.80/kg and rising as high as €4.00/kg for O=/+ grading bulls with a good cover of flesh.
Those less than 16 months and trading on the grid are selling on average from a base of €4.05/kg.
This includes the 12c/kg QPS payment.
Northern trade
The northern trade is solid, with many deals starting at a U-3 base of £3.60/kg to £3.62/kg. This is the equivalent of €4.12/kg to €4.14/kg at 87.4p to the euro and €4.34/kg to €4.37/kg VAT inclusive at 5.4%.
Regular sellers and producers handling larger numbers are securing returns rising towards £3.70/kg (€4.46/kg including VAT).
Cow prices are unchanged, with O grading cows returning a carcase weight in excess of 250kg ranging from £2.80/kg to £3.00/kg (€3.38/kg to €3.62/kg including VAT), while good R and U grading cows are rising to £3.20/kg (€3.86/kg including VAT).
British prices continue to rise on the back of tighter supplies, with the AHDB reporting an average rise of 1p/kg. Returns for R4L steers and heifers averaged £3.73/kg and £3.75/kg (€4.50/kg to €4.52/kg) respectively last week, with R3 grading young bulls increasing 2p/kg to £3.62/kg (€4.36/kg). This leaves the differential for a 350kg steer paid at €4.10/kg and securing the 12c/kg QPS bonus at about 30c/kg or over €100 on a 350kg steer carcase.
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Northern view: beef market steady with deals on offer
Download the Irish Farmers Journal news app today and get the latest prices for all grades and all factories through the built-in Livestock Tool
Upward momentum in the beef trade this spring has been stop-start, with small price lifts followed by factories then moving quickly to curtail upward movement.
Factories know that at some stage in the very near future they will lose the upper hand in negotiations, with drafting of significant numbers of grass-finished cattle pushed well out into June and July.
While last week’s kill reduced by 1,349 head, it was still well above normal for the time of year at 33,594.
However, there are signs of factories’ grasp on the beef trade weakening.
Agents that were pushing out large groups of cattle to better manage throughput are this week more anxious to get cattle moving, with prices creeping upwards despite their best efforts.
Sellers competing at the top of the market are having some success in negotiating a base of €4.10/kg for steers, while there are higher numbers of sellers moving off a base of €4.00/kg and securing €4.05/kg.
All plants are willing to exceed quoted prices when offered the chance to compete for large batches.
A similar trend is evident for heifers, with more cattle trading on a base of €4.15/kg and a base of €4.18/kg to €4.20/kg at the top of the market.
The cow trade remains the standout performer this spring, with prices continuing to run 20c/kg to 30c/kg above 2017 levels.
P+3 grading cows are selling anywhere from €3.30/kg to €3.45/kg, with O grades from €3.40/kg to €3.60/kg.
The strength of the trade is evident in marts where agents and feeders are locking horns for slaughter-fit cows.
R grading cows are trading, in general, from €3.60/kg to €3.70/kg, but specialist plants have paid up to €3.80/kg and higher for heavy R and U grading cows.
There is also signs of bull prices edging upwards, with a couple of plants paying a top price of €4.20/kg for U grading bulls.
The general trade is €4.10/kg to €4.15/kg for U grades and €4.05/kg for R grades, but sellers with numbers should note a strengthening in the trade.
Friesian bulls remain a strong trade relative to continental bulls, with prices at the lower end of the market starting at €3.80/kg and rising as high as €4.00/kg for O=/+ grading bulls with a good cover of flesh.
Those less than 16 months and trading on the grid are selling on average from a base of €4.05/kg.
This includes the 12c/kg QPS payment.
Northern trade
The northern trade is solid, with many deals starting at a U-3 base of £3.60/kg to £3.62/kg. This is the equivalent of €4.12/kg to €4.14/kg at 87.4p to the euro and €4.34/kg to €4.37/kg VAT inclusive at 5.4%.
Regular sellers and producers handling larger numbers are securing returns rising towards £3.70/kg (€4.46/kg including VAT).
Cow prices are unchanged, with O grading cows returning a carcase weight in excess of 250kg ranging from £2.80/kg to £3.00/kg (€3.38/kg to €3.62/kg including VAT), while good R and U grading cows are rising to £3.20/kg (€3.86/kg including VAT).
British prices continue to rise on the back of tighter supplies, with the AHDB reporting an average rise of 1p/kg. Returns for R4L steers and heifers averaged £3.73/kg and £3.75/kg (€4.50/kg to €4.52/kg) respectively last week, with R3 grading young bulls increasing 2p/kg to £3.62/kg (€4.36/kg). This leaves the differential for a 350kg steer paid at €4.10/kg and securing the 12c/kg QPS bonus at about 30c/kg or over €100 on a 350kg steer carcase.
Read more
Northern view: beef market steady with deals on offer
Download the Irish Farmers Journal news app today and get the latest prices for all grades and all factories through the built-in Livestock Tool
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