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Factories are keen to keep a lid on steer and heifer prices. The base price for steers remains at a range of €3.70/kg to €3.75/kg, with heifers 10c/kg higher at a price range of €3.80/kg to €3.85/kg. There are limited numbers moving 5c/kg higher, but this is largely restricted to specialist finishers handling large numbers.
Factory appetite is robust and this is reflected in many agents softening their grip on cow and young bull prices in an attempt to entice higher numbers forward.
A number of plants that were quoting a price of €2.90/kg for P+3 grading cows are now paying €3.00/kg, while, likewise, the price for fleshed O grading cows has lifted 5c/kg to 10c/kg, ranging from €3.10/kg to €3.20/kg.
The strengthening in demand is also evident in greater purchasing activity in mart sales, where heavy R and U grading cows continue to meet excellent demand.
R grading cows range, in general, from €3.25/kg to €3.35/kg, with U grades from €3.35/kg to €3.50/kg, but specialist finishers are again capable of securing a significant premium over sellers with individual or small numbers.
The lift in activity for cows held throughput steady, with last week’s cow kill rising 129 head at 5,505. This is in contrast to steers, which recorded a slight dip in throughput of 140 head at 17,189, while heifer throughput of 9,636 was 229 head lower than the previous week.
The young bull kill increased 50 head to 2,799, while the kill of bulls over 24 months reduced 345 head to a normal level of 578 after last week’s spike in throughput.
The overall kill reduced by 511 head to 38,744. The kill continues to run ahead of 2017 levels, with 973 extra cattle handled compared with the corresponding week in 2017, while year-to-date throughput in 2018 is running 47,567 head higher.
Bull prices are slowly starting to lift, with price rises seen first by specialist finishers. This is leaving a wider differential between prices paid, with U grade bulls trading anywhere from €3.85/kg at the bottom of the market to a top price of €3.95/kg to €4.00/kg.
R grading bulls are trading on average from €3.75/kg to €3.75/kg, with O grading bulls a relatively good trade at €3.60/kg to €3.70/kg.
Bulls less than 16 months and trading on the grid remain at a similar base range to steers of €3.70/kg to €3.75/kg.
Higher NI throughput
The trade in the North can be described as sticky this week, with higher numbers coming on stream making it easier for factories to purchase cattle.
A significant percentage of this week’s cattle kill are moving at last week’s U-3 base quote of £3.52/kg to £3.56/kg.
This is the equivalent of €4.03/kg to €4.08/kg or €4.25/kg to €4.30/kg including VAT at 5.4%.
Top prices are rising to the low-£3.60s, with reports suggesting deals being negotiated currently are 2p/kg lower with top prices to £3.60/kg (€4.35/kg).
Sterling has strengthened to 87.3p to the euro on the back of British and EU negotiations considering a deal that could see the UK temporarily remain within the customs union.
If the strengthening in sterling to euro holds, it will make Irish beef exports more competitive at a key time when volumes are building.
British beef prices are solid, with the AHDB reporting a marginal increase in price. R4L steers and heifers are reported at an average of £3.83/kg (€4.62/kg). R3 grading bulls are steady at £3.63/kg (€4.38/kg), while O grading cows are steady at a range of £2.60/kg to £2.75/kg (€3.14/kg to €3.32/kg).
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