The beef trade can be best described as remaining flat. Factories are sourcing cattle without any degree of difficulty, with last week’s kill of 40,102 leaving the kill breaching the 40,000 head mark for four out of the last five weeks. The other week was just shy of that mark, at 39,955 head.

It should be remembered that the kill for the corresponding five-week period in 2017 averaged 39,500, but, unfortunately, market dynamics were much stronger, with factories anxious to handle more stock and prices rose 10c/kg during this period.

Prices are static, with steers trading at a base of €3.75/kg and heifers at €3.85/kg. This has been the case in recent weeks, with very little variance and only small numbers securing an additional 3c/kg to 5c/kg higher base price. Last week’s kill increased by 147 head, but the total figure fails to disclose significant changes.

The steer kill fell by 1,240 head to 13,331, while heifer throughput continues to be driven by more traditionally-bred dairy-cross heifers in the system, with last week’s heifer throughput rising to 11,960 head, the highest weekly kill for quite some time.

A closer look at the bull kill reflects producer delays in getting bulls killed. Last week’s young bull throughput increased 576 head to 5,404, but when compared with the corresponding week in 2017, it is some 1,141 head lower.

Factories remain very selective in their purchasing, with some producers unsure of getting bulls accepted for slaughter before the Christmas break.

Prices for R grading bulls range from €3.70/kg to €3.75/kg, while U grading bulls are reported as trading in general from €3.80/kg to €3.85/kg.

There are specialist finishers securing higher by means of bonus payments for bulls produced to a tight specification.

The topic of specification also continues to come more into the spotlight. There is sluggish demand in some plants for bulls capable of delivering a carcase weight in excess of 430kg to 450kg and deemed overweight.

Fat cover is also receiving closer scrutiny, with 2= bulls cut 10c/kg in cases. Under-16-month bulls have been priced off the grid. Base prices for these bulls range from €3.70/kg to €3.75/kg.

Cow prices are unchanged, though some mart managers reporting a slight trade lift in recent days. P+3 grading cows range from €2.60/kg to €2.75/kg, with O grades from €2.80/kg to €2.90/kg, but capable of veering 10c/kg either side of this range, depending on the quality of cows on offer.

R grades are being purchased in the main from €2.90/kg to €3.00/kg, but heavy fleshed cows are rising to €3.15/kg in cow-specialist plants, while U grading cows range from €3.20/kg to €3.35/kg.

Northern trade

The northern trade also remains sluggish. Base U-3 steer and heifer quotes continue to face downward price pressure. A couple of plants are quoting a base of £3.40/kg and are pointing to lower quotes, while the majority of sellers are trading between £3.40/kg and £3.46/kg.

Sterling has weakened to 90.3p to the euro on the back of further Brexit-related turmoil. This equates to €3.77/kg to €3.83/kg, or €3.97/kg to €4.04/kg including VAT at 5.4%.

Worryingly, British beef prices continue to lose ground. Last week’s average steer price is reported by the AHDB as down 2p/kg, with R4L steers averaging £3.68/kg (€4.30/kg incl VAT) and heifers down 2.7p/kg with R4L lots averaging £3.66/kg (€4.27/kg). The average young bull price reduced by 6p/kg, with R grades listed at £3.50/kg (€4.09/kg).

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