The beef trade is caught in a tricky position. Prices falling on a weekly basis and farmers under pressure to reduce feed demand are attracting more cattle on to the market and maintaining downward pressure on prices.
Demand is said to be strong, but factories are under no pressure to purchase stock, with the only issues from a processing point of view in the shape of managing throughput.
Many plants are booked out and are pushing supplies forward into next week.
Some plants are also reluctant to give a longer term price when quoting for cattle, with steers and heifers currently trading on a base of €3.95/kg and €4.05/kg, respectively, but there are soundings of some plants looking to take another 5c/kg off next week’s base prices.
Farm organisations are calling on factories to steady the trade and help reduce the intensity of cattle coming on to the market.
There is no doubt that such a move would deliver in restoring some confidence.
Last week’s kill increased by 319 head to 34,210. Steer throughput increased 554 head to reach 11,681, while the number of cows processed rose by 244 head to reach 9,282. This is 1,732 head above the corresponding week in 2017 and is underpinning a year-on-year weekly increase in throughput of 2,096 head.
The steer kill is 942 head lower than the corresponding week in 2017, but this is compensated for by 929 more young bulls processed. Total throughput for the year to date is running 23,458 ahead of 2017 levels.
There is renewed pressure on cow prices, with quotes remaining very variable. The greatest pressure is on dairy cows, with cows continuing to come direct from farms in greater numbers and adding to steady supplies from specialist finishers.
Quotes for P+3 grading cows are starting as low as €3.00/kg, with a differential of 10c/kg to 20c/kg between plants. Likewise, fleshed O grading cows are ranging from €3.15/kg to €3.30/kg.
These prices are for finished cows achieving a carcase weight of 260kg to 270kg-plus. Light-carcase cows returning a fat score of one are anywhere from 50c/kg to €1/kg lower.
Plants have also tightened bull specifications, with fewer allowances on fat cover, carcase weight and age.
Bulls less than 16 months and trading on the grid are this week moving on a base of €3.95/kg to €4.00/kg.
Carcase weight limits are generally being set at 400kg to 420kg, with some specialist finishers securing higher.
Some plants are trying to purchase heavy bulls off the grid, while cattle killing 2=/2- on fat cover are facing deductions of 10c/kg to 15c/kg.
Some plants are also slow to kill bulls for the rest of the week and are preferring to concentrate on steers and heifers.
Bulls over 16 months and less than 24 months are trading, on average, at €3.95/kg for R grades and €4.05/kg for U grades.
Sluggish northern trade
Trading activity in the North has slowed considerably, with plants closed on Thursday 12 July and many remaining closed on Friday.
Base U-3 quotes for steers and heifers range, in general, from £3.52/kg to £3.56/kg or the equivalent of €3.98/kg to €4.02/kg at 88.5p to the euro and €4.22/kg to €4.24/kg including VAT at 5.4%.
Cow prices have not come under the same pressure, with O grades ranging from £2.70/kg to £2.90/kg (€3.22/kg to €3.45/kg incl VAT).
There is no change to British prices, with R4L steers and heifers steady at £3.81/kg (€4.54/kg).
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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Northern view: fewer price deals as cattle trade slows
The beef trade is caught in a tricky position. Prices falling on a weekly basis and farmers under pressure to reduce feed demand are attracting more cattle on to the market and maintaining downward pressure on prices.
Demand is said to be strong, but factories are under no pressure to purchase stock, with the only issues from a processing point of view in the shape of managing throughput.
Many plants are booked out and are pushing supplies forward into next week.
Some plants are also reluctant to give a longer term price when quoting for cattle, with steers and heifers currently trading on a base of €3.95/kg and €4.05/kg, respectively, but there are soundings of some plants looking to take another 5c/kg off next week’s base prices.
Farm organisations are calling on factories to steady the trade and help reduce the intensity of cattle coming on to the market.
There is no doubt that such a move would deliver in restoring some confidence.
Last week’s kill increased by 319 head to 34,210. Steer throughput increased 554 head to reach 11,681, while the number of cows processed rose by 244 head to reach 9,282. This is 1,732 head above the corresponding week in 2017 and is underpinning a year-on-year weekly increase in throughput of 2,096 head.
The steer kill is 942 head lower than the corresponding week in 2017, but this is compensated for by 929 more young bulls processed. Total throughput for the year to date is running 23,458 ahead of 2017 levels.
There is renewed pressure on cow prices, with quotes remaining very variable. The greatest pressure is on dairy cows, with cows continuing to come direct from farms in greater numbers and adding to steady supplies from specialist finishers.
Quotes for P+3 grading cows are starting as low as €3.00/kg, with a differential of 10c/kg to 20c/kg between plants. Likewise, fleshed O grading cows are ranging from €3.15/kg to €3.30/kg.
These prices are for finished cows achieving a carcase weight of 260kg to 270kg-plus. Light-carcase cows returning a fat score of one are anywhere from 50c/kg to €1/kg lower.
Plants have also tightened bull specifications, with fewer allowances on fat cover, carcase weight and age.
Bulls less than 16 months and trading on the grid are this week moving on a base of €3.95/kg to €4.00/kg.
Carcase weight limits are generally being set at 400kg to 420kg, with some specialist finishers securing higher.
Some plants are trying to purchase heavy bulls off the grid, while cattle killing 2=/2- on fat cover are facing deductions of 10c/kg to 15c/kg.
Some plants are also slow to kill bulls for the rest of the week and are preferring to concentrate on steers and heifers.
Bulls over 16 months and less than 24 months are trading, on average, at €3.95/kg for R grades and €4.05/kg for U grades.
Sluggish northern trade
Trading activity in the North has slowed considerably, with plants closed on Thursday 12 July and many remaining closed on Friday.
Base U-3 quotes for steers and heifers range, in general, from £3.52/kg to £3.56/kg or the equivalent of €3.98/kg to €4.02/kg at 88.5p to the euro and €4.22/kg to €4.24/kg including VAT at 5.4%.
Cow prices have not come under the same pressure, with O grades ranging from £2.70/kg to £2.90/kg (€3.22/kg to €3.45/kg incl VAT).
There is no change to British prices, with R4L steers and heifers steady at £3.81/kg (€4.54/kg).
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
Read more
Northern view: fewer price deals as cattle trade slows
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