The gap between 2018 and 2017 beef prices has tightened in recent weeks to as low as 2c/kg to 5c/kg, with prices starting the year 20c/kg to 25c/kg above 2017 levels and running 10c/kg to 15c/kg ahead for a period from mid-February to mid-March.

The tightening in the price gap in recent weeks stems from equivalent 2017 prices rising at a faster rate and supplies tightening quicker 12 months previous.

Throughput in 2018 has benefited from more cattle in the system and some farmers opting to feed on and finish cattle when forced with a delayed turnout. This is reflected in the annual kill, with throughput for the year to date running almost 23,000 head above last year’s levels, as reflected in Table 1. It should be noted that throughput of beef cattle is running about 20,400 head higher, with an extra 2,550 calves moving off farm for slaughter in 2018.

The price trends are reflected in the figures below and show the price gap tightening the most for steers and heifers. Cows continue to outperform 2017 returns, with the price gap also differing depending on the class of cow.

P+3 grading cows are currently running about 8c/kg ahead, with 2018 prices to date running 18c/kg ahead on average. O3 grading cows are running about 13c/kg above the corresponding week in 2017, while year-to-date levels are running almost 21c/kg ahead. The excellent demand for good-quality fleshed cows is reflected in R3 grading cows running 16c/kg above the same week in 2017.

Price increase continues

Meanwhile, beef prices continue to edge upwards. There are a rising number of steers commanding a base of €4.15/kg, although significant numbers also continue to move at a base of €4.10/kg to €4.12/kg. Likewise, heifers are trading at a base of €4.20/kg to €4.25/kg, with higher prices reported at the top end of the market.

The bull trade is also rising, with good-quality bulls less than 16 months and trading on the grid moving in greater numbers on a base of €4.15/kg. R grading bulls less than 24 months are trading from €4.10/kg to €4.15/kg, with U grades from €4.15/kg to €4.20/kg. Specialist finishers with greater selling power are securing an extra 2c/kg to 5c/kg.

P+3 grading cows are trading from €3.40/kg to €3.50/kg, with fleshed grades from €3.50/kg to €3.60/kg. The best demand is for cows delivering a carcase of 260kg-plus, with regular sellers securing a 5c/kg to 10c/kg premium for cows traded in large lots. R grading cows are selling anywhere from €3.65/kg to €3.80/kg, with U grades topping this in cow-specialist plants.

Solid northern trade

Northern Ireland factory agents were busy at the weekend securing cattle ahead of this week’s Balmoral Show. U-3 base quotes remain at £3.60/kg to £3.62/kg (€4.31/kg to €4.33/kg at 88p to the euro and including VAT at 5.4%), but more sellers are falling into the bracket of £3.64/kg to £3.66/kg (€4.36/kg to €4.38/kg), while at the top of the market prices are rising to and exceeding £3.70/kg.

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