Factory appetite for cattle stepped up a notch in recent days. Agents increased purchasing activity in a bid to maximise throughput and ensure sufficient supplies were available ahead of the Christmas break. The move is being driven by beef sales holding strong right to year-end, with reports indicating factories have very little beef in reserve.

Sellers with stronger negotiating power have benefitted from the rise in demand, with more producers receiving a base of €3.75/kg for steers and €3.85/kg for heifers. The higher base is easier secured for heifers with supplies tightening. Some sellers have been offered 5c/kg extra to entice producers to also agree to move cattle next week, with independent plants especially active with less access to feedlot or contracted cattle.

Deals have also been done on out-of-spec stock with plants keen not to miss out on any sales.

The majority of sellers with smaller numbers continue to be offered a base of €3.70/kg for steers and €3.80/kg for heifers. The potential to get this lifted will be influenced by how supplies come on stream in the new year, with some reports in the southeast suggesting supplies could be tighter with later housing dates, while others say this could be somewhat balanced out by more cattle coming on stream in the midlands and west.

For many plants, today (Thursday) is the last full day of processing with tomorrow earmarked for a small kill or for getting supplies in transit to customers. Most plants are reopening on Wednesday and operating on a three-day kill. A percentage of cattle for these days are already secured, but given the strong demand, there is still an opportunity to trade.

Bull kill steady

Bull throughput is steady and is likely to remain this way over the Christmas break, with plants using specialised finishers to underpin throughput. R grade bulls are trading from €3.75/kg to €3.80/kg, with U grades from €3.80/kg to €3.90/kg. This excludes producer bonuses paid to large-scale producers or those in producer schemes.

O grade bulls are trading anywhere from €3.55/kg to €3.65/kg, with a few prices of €3.70/kg reported for good-quality O+ grading Friesian bulls traded in high numbers. Bulls less than 16 months are selling on the grid from a base of €3.70/kg to €3.75/kg.

The cow trade is also firm, with agents and dealers active for slaughter-fit cows over the last week, with trading now ceased until the first or second week of January. With a large differential persisting, P+3 grading cows are trading from €2.85/kg to €3.00/kg, O grades from €2.95/kg to €3.15/kg and R grades from €3.20/kg to €3.30/kg. U grades are in demand from cow specialist plants, ranging in price from €3.30/kg to €3.40/kg.

Northern trade

Some northern plants moved to take control of the trade last week, but attempts to lower base quotes have not materialised. Demand remains firm, with U3- steer and heifer base quotes e?from £3.44/kg to £3.48/kg (€4.30/kg to €4.34/kg).

Regular sellers are securing 4p/kg to 6p/kg higher, with beef finishers supplying on a bonus payment mechanism securing prices into the high £3.50s to £3.60/kg.

Cow prices remain unchanged despite a 5p/kg lower quote, ranging from £2.45/kg to £2.60/kg (€3.06/kg to €3.25/kg) for good-quality O grades, with R grades from £2.60/kg to £2.70/kg.