Last week’s beef kill increased by 2,245 head to reach 34,943.The increase in supplies allowed factories to stall upward momentum in the trade, with prices steadying.

Agents are still anxious not to miss out on any deals, but they are trying to manage the kill and push out larger numbers to balance the trade over the coming weeks.

Steers are trading at a mixed base of €4.00/kg to €4.05/kg, with supplies tighter as you progress up the country. Flat-priced deals for O grading Friesian steers range from €3.80/kg to €3.90/kg, with large lots of 50-plus cattle trading up to €4.00/kg. Heifers are moving at a base of €4.10/kg to €4.15kg.

Factories are keen to keep a lid on price, but some are having to offer allowances on transport or 5c/kg extra to sellers with high numbers, which shows there is still good bite in the trade.

Both the steer and heifer kill increased last week by 785 head and 496 head respectively, with steer throughput recorded at 12,542, the second-highest weekly kill for the year to date.

Cows also recorded a significant lift in throughput, rising 655 head to reach 8,344, the largest cow kill in 2018. The kill for last week was 4,781 head above the corresponding week in 2017. This has driven the kill for the year to date 15,633 head above the same period in 2017.

With higher numbers in the system, beef finishers will be hoping that this week’s announcement on access to the Chinese market can return some tangible benefits to farmgate prices.

The higher cow kill has not quelled factory demand, with agents very active in direct farm sales and also in sourcing cows through marts.

Cow prices can be summarised as €3.35/kg to €3.40/kg for P grades, €3.50/kg to €3.55/kg for O grades, €3.60/kg to €3.70/kg for R grades and a top of €3.70/kg to €3.80/kg for heavy U grading cows.

Regular sellers with greater negotiating power continue to command a 10c/kg to 15c/kg premium over sellers handling small numbers.

Young bulls are also firm, with R grades split on a price range of €4.05/kg to €4.10/kg, while U grades are selling from €4.10/kg to €4.15/kg.

Friesian bulls remain a relatively good trade, with prices for O grading bulls ranging anywhere from €3.80/kg to €3.95/kg, with numbers on offer, quality and fat cover influencing prices paid. Bulls less than 16 months and trading on the grid are selling on a base of €4.00/kg to €4.05/kg.

Northern trade

The northern trade is solid. U-3 steer and heifer base quotes remain at £3.58/kg to £3.60/kg. The sterling to euro exchange rate has fluctuated a bit in recent days and at Wednesday morning’s exchange rate of 87p to the euro, this equates to €4.11/kg to €4.14/kg or €4.33/kg to €4.36/kg including VAT at 5.4%.

Regular sellers continue to secure returns into the mid- to high-£3.60s, with particular bite in the heifer market. Cows are steady, with O grades selling on average from £2.80/kg to £2.90/kg (€3.39/kg to €3.51/kg), while good-quality R and U grading cows are rising to £3.00/kg to £3.10/kg (€3.63/kg to €3.75/kg).

The British trade is firm, with relatively tight supplies keeping a good floor under the trade and continuing to edge prices upwards.

R4L steers and heifers range on average from £3.70/kg to £3.75/kg (€4.48/kg to €4.54/kg incl VAT), with prices strongest in Scotland and the border region.

R3 grading young cattle are trading around the £3.60/kg (€4.36/kg incl VAT) mark, while fleshed O grading cows are averaging £2.80/kg (€3.39/kg).

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