The beef trade remains sluggish, with supplies more than satisfying demand. This is leaving the majority of steers and heifers trading at a base of €3.75/kg and €3.85/kg respectively.

There are small numbers moving at 5c/kg higher, but this remains confined to producers with the best negotiating power and trading at the top of the market.

Christmas trade

Factories have become more focused on steer and heifer throughput to start laying down beef for the Christmas trade.

Upward movement in price will be dictated by how demand for this trade performs in the coming weeks.

Strong demand in 2017 saw prices rise towards the end of November, which, uncharacteristically, coincided with the beef kill hovering around 39,000 to 40,000 head.

Bull throughput is following a seasonal increase in throughput

The focus on steers and heifers has contributed to a slackening off in demand for cows, with plants managing throughput much closer.

Some plants have reduced quotes for P+3 grading cows to €2.80/kg, but 10c/kg to 15c/kg higher has been paid to those with stronger selling power and in plants most active in the cow trade.

Likewise, some plants have reduced quotes for O grading cows to €3.00/kg, but a similar premium is evident, while R grades range anywhere from €3.25/kg to €3.40/kg at the top end of the market.

Bull throughput is following a seasonal increase in throughput, with this trend likely to continue as specialist finishers begin to move bulls in greater numbers.

Quotes for R grading bulls range in general from €3.75/kg to €3.80/kg, with U grades from €3.85/kg to €3.90/kg. This excludes bonuses paid to specialist finishers handling large numbers.

O grading bulls are trading from €3.60/kg to €3.70/kg, with numbers, flesh cover and carcase weight all influencing prices paid for Friesian and dairy-cross bulls.

Northern trade

The latest LMC market report forecasts the recent strong throughput levels in northern plants to persist until at least early next year.

This is based on the number of beef cattle in the 18- to 24-month age category in October 2018 holding firm on year-earlier levels at 196,044, while numbers in the 24- to 30-month age category is also unchanged at 97,773.

Longer-term supplies look set to tighten, with 146,207 head in the 12- to 18-month age category down by 2.7%, with the six- to 12-month age category down 6.1% to 227,851, while the zero- to six-month category is 5.8% down at 127,113 head.

Base U-3 steer and heifers quotes in the North remain at £3.48/kg to £3.54/kg or the equivalent of €3.98kg to €4.05/kg at Monday evening’s exchange rate of 87.5p to the euro.

When VAT is included at 5.4%, it equates to €4.19/kg to €4.27/kg.

Regular sellers are securing 2p/kg to 4p/kg higher with top returns rising to £3.60/kg (€4.34/kg incl VAT).