July has traditionally been a quieter month for factory throughput, nestled between the last of shed finished cattle coming on stream in May and grass cattle coming on stream in greater numbers in August. This year marks a stark change from the norm, with last week’s kill reaching 35,628 head, an increase of 1,418 head on last week’s kill and 4,205 higher than the corresponding week in 2017.

Despite the higher numbers, there are slight signs of some well-needed stability entering the trade, with steers and heifers trading on a base of €3.90/kg and €4.00/kg respectively. As yet, there are no talks of prices dropping below a base of €3.90/kg for steers but for the last three weeks moves to pull prices have occurred at the end of the week.

The extra numbers have allowed factories to take much greater control of the cow market. Cow prices still vary hugely but it is more quality than numbers that is now influencing prices paid. Fleshed O grading cows are being quoted a price of €3.10/kg to €3.20/kg with P+3 grades averaging €3.00/kg to €3.10/kg although a few plants have dropped under €3.00/kg.

Analysis of the cow kill (on page 21) shows the additional kill of about 1,000 to 1,200 extra cows falling into the P grade category with many of these low carcase weight and under fleshed. Prices for P=/- grading cows with a reasonable cover of flesh range from €2.00/kg to €2.50/kg with P-1- cows achieving prices as low as €1.30/kg to €1.40/kg. R grading cows range from €3.35/kg to €3.50/kg with heavy carcase cows at the top of the price range, with small numbers of U grading cows selling 5c/kg to 10c/kg higher.

The higher numbers on offer have also allowed plants to become more selective with cattle deemed out-of-spec and bulls significantly affected. Some plants are not willing to quote for bulls offered by new customers while all have reduced demand for aged bulls and those borderline in terms of fat cover. The fat cover of bulls has been a greater issue, with some pointing to the high temperatures as potentially having an effect. The latest data available for week ending 9 July shows 36% of bulls killed that week achieving a fat cover of 2= or lower.

R grading bulls are trading from €3.85/kg to €3.95/kg with U grades from €3.95/kg to €4.00/kg with small numbers at €4.05/kg. The base for bulls less than 16 months and traded on the grid is €3.85/kg to €3.90/kg with some plants taking bulls off the grid at a carcase weight above 400kg to 420kg.

The northern trade is also under renewed pressure with cattle backed up from last week not helping and sellers in cases facing booking delays of 10 days to two weeks. Base U-3 quotes are back 4p/kg to 6p/kg with quotes for steers and heifers ranging from £3.48/kg to £3.52/kg or the equivalent of €3.91/kg to €3.95/kg at a stronger exchange rate of 89.1p to the euro and €4.11/kg to €4.16/kg.

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Beef prices ease as trade remains under pressure