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After weeks of downward price pressure, there is a more positive tone to the beef trade. Factory agents are reluctant to increase prices across the board, but, at the same time, are careful not to lose out on deals involving higher numbers and are looking after regular sellers better.
This has led to a significant increase in the number of producers trading at the higher end of the market securing a base of €3.80/kg for steers and €3.90/kg for heifers.
The highest percentage of steers and heifers continue to trade at a base of €3.75/kg and €3.85/kg respectively, with the number of cattle moving at a 5c/kg lower base reducing as the week progresses.
There are still factories opening negotiations on this lower quote, with this tactic being used to allow a 5c/kg rise to entice cattle forward.
The potential for prices to rise will be influenced by numbers coming on stream as factories prepare to lay down beef for the Christmas trade.
Numbers in the south and southeast are relatively tight in areas with less pressure on farmers to move stock, while recent rainfall in the west of the country is bringing more numbers forward.
The cow trade remains solid, with numbers slow to build in marts, as dairy farmers in the south opt to take advantage of recent weather and milk on cows for longer.
P+3 grading cows range from €2.95/kg to €3.05/kg, with fleshed O grading Friesians creeping upwards and ranging anywhere from €3.00/kg to €3.15/kg, with odd deals securing an extra 5c/kg. O+ grading continentals have risen to €3.20/kg to €3.25/kg in select deals.
Heavy R and U grading cows commanded a premium even when pressure was applied on price and this remains the case, with heavy cows selling from €3.40/kg to €3.55/kg and a little higher in cases.
Like cows, bull prices vary significantly between and even within plants. The general prices reported for R grading bulls range from €3.75/kg to €3.80/kg, with U grades from €3.85/kg to €3.90/kg. Prices paid to specialist finishers producing bulls to tight specification have risen as high as €3.95/kg to €4.00/kg.
Price comparison
Steer prices are currently running 3c/kg on average behind the corresponding week in 2017, with heifer prices an average of 5c/kg lower.
Prices for the last 10 weeks are on a par with 2017 levels, with slight differences in weekly prices from year to year. 2018 prices are closely following the five-year average and a full analysis can be viewed at www.farmersjournal.ie under the beef markets section.
Prices for O3 grading cows are currently running 12c/kg behind the corresponding week in 2017.
The average price for the last 18 weeks, or since the cow trade came under pressure, was recorded at €3.09/kg, excluding VAT, 10c/kg below the same period in 2017.
This is in contrast with the previous 22-week period from the start of the year where O3 cows averaged €3.31/kg excluding VAT or 18c/kg above the corresponding period in 2017.
Northern trade
The northern trade is unchanged, with supply finely balanced with demand. Base quotes remain at £3.50/kg to £3.54/kg of €3.98/kg to €4.03/kg (€4.19/kg to €4.25/kg incl VAT) at 87.9p to the euro, with sterling weakening following Brexit uncertainty.
Regular sellers are pushing base quotes 2p/kg higher, with top returns rising to £3.60/kg (€4.32/kg incl VAT), with agents keen to look after large finishers and safeguard supplies in the coming weeks.
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