Beef throughput remains high, with last week’s kill increasing by 929 head to reach 39,255. The higher throughput hides the fact that factory agents had to increase activity to secure sales and this trend has carried more so into this week.

All plants are anxious to maintain the higher throughput levels they have become accustomed to in recent weeks, but are slow to increase price.

Steers continue to trade on a mixed base of €3.70/kg to €3.75/kg, with regular sellers and those offering higher numbers in a better negotiating position. The same trend is evident for heifers, with base prices ranging from €3.80/kg to €3.85/kg, with small numbers of choice lots moving for 5c/kg higher.

Good-quality fleshed cows are steady in price, with P+3 grading cows ranging on average from €2.80/kg to €3.05/kg, with fleshed O grading cows from €3.00/kg to €3.20/kg. A differential of up to, and greater than, €1/kg remains for light-carcase poorly-fleshed cows.

R grades range from €3.20/kg to €3.35/kg, with U grades typically rising to €3.45/kg to €3.50/kg, with cow-specialist plants paying 5c/kg to 10c/kg higher.

The young bull trade is steady. Prices paid for R grading bulls range on average from €3.70/kg to €3.75/kg, with U grades from €3.80/kg to €3.85/kg, while O grades average €3.55/kg to €3.65/kg. Again, specialist finishers are capable of securing 5c/kg to 10c/kg higher.

Bulls less than 16 months and priced on the grid range from a base of €3.70/kg to €3.75/kg. Fat cover and weight continue to be the two main factors for bulls not being paid on the grid.

EU overview

Irish prices have dipped below the continental EU average for the first time this year. The latest R3 Irish steer price reported by Bord Bia of €3.69/kg excluding VAT compares poorly to an R3 German bull price of €3.84/kg, a French bull price of €3.75/kg, which is down 16c/kg on corresponding 2017 levels, and an Italian R3 bull price of €3.62/kg.

Prices also lag well behind British and Northern prices. British R4L steer and heifer prices range on average from £3.82/kg to £3.85/kg or the equivalent of €4.30/kg to €4.33/kg (€4.53/kg to €4.56/kg VAT inclusive at 5.4%). Northern Irish U-3 base quotes range from £3.52/kg to £3.56/kg (€4.17/kg to €4.22/kg incl VAT), with top prices rising to the low-£3.60s, with heifers a shade stronger than steers.

The AHDB’s latest import and export update shows continued higher exports of Irish beef to the UK. The volume of beef exported in July increased 4% to 15,000t, with Ireland dominating UK import volumes at 69%. The latest increase brings year-to-July exports to 112,300t, up 6% on the corresponding period in 2017.

Global snapshot

The USDA reports cold store beef stocks at the end of August increasing 5.6% on 2017 levels and 14.4% on the five-year average. The current US R3 steer price of €3.29/kg is up 18c on the same week in 2017, but year-to-date prices are 11% lower.

Brazilian beef exports exceeded all records for the last two months. The country exported a massive 150,664t of beef in September, an increase of 39,000t on 2017 levels. The devaluation of the Brazilian Real is making Brazilian beef more competitive on the world market, with the latest R3 steer price of €1.93/kg reported by Bord Bia a fall of 13c on 2017 levels. Argentina, a former powerhouse in global beef trade, continues to drive recovery in beef exports, which increased 129% year-on-year in August, with 34,934t exported.

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Northern view: cattle price steady as supplies build