The UK beef trade has come under further pressure this week. Prices have fallen by 3p to 4p/kg or 4c to 5c/kg, with growing difficulties for sellers in getting cattle killed. Eblex reports show average steer and heifer prices falling below 350p/kg or the equivalent of €4.50/kg including VAT for the first time since November 2012.

The trade remains strongest in Scotland and north England, with downward price pressure most evident in the south of England. Some plants there have moved this week to try to pull steer and heifer prices back to £3.30/kg to £3.40/kg or €4.30/kg to €4.39/kg incl VAT. Eblex points to slower consumer demand and above normal throughput as factors to further downward price pressure.

Holding steady: The Irish trade is holding largely steady, despite the UK pressure. It is important to note that, even with falling British prices, the Irish versus British price differential still stands at over €200 per head.

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A greater concern for many sellers this week is getting cattle booked in for slaughter. Prices have eased in some cases by 5c/kg with the majority of steers trading at a base of €3.90/kg. Heifers are selling at a base price of €3.95/kg, although some sellers who negotiated at the start of the week, or are dealing with large numbers, have secured a base of €4.00/kg. Last week’s kill fell just short of 30,000 head, the first time that the kill has fallen under 30,000 head in 2014. The higher than normal throughput is running 3,070 above the comparable week in 2013 with 67,012 extra animals killed in the year to date.

The highest priced deals continue to be paid for in-spec stock. Steers and heifers falling outside the 30-month age bracket or delivering carcase weights above 400kg continue to face possible price deductions of 10c to 20c/kg. The trade for Friesian steers is unchanged. Flat-priced deals range from a low of €3.60/kg for O=/+ grading steers to €3.80/kg at the top end of the market. Flat-priced deals for heifers range from €3.85/kg to €4.05/kg, with Hereford and Angus heifers continuing to attract the strongest deals. The trade for these heifers is being helped by greater competition following an increase in bonus prices from producer groups.

Deals on bulls: Lower throughput of bulls and many sellers now trading on contract or having strong negotiating power with processors means there is little change in the bull trade.

The general run of prices ranges from €3.60/kg for R grade bulls to €3.70/kg for U grade bulls. Deals are also being completed on weight allowances with most plants imposing a maximum carcase weight limit of 420kg. The highest carcase weight limit reported is 450kg for top-quality continental bulls.

Bulls aged less than 16 months of age are selling for €3.80/kg for R grading bulls and €3.90/kg for U grading bulls. The small number of plants that are paying on the grid are offering a base of €3.80/kg to €3.90/kg. The QPS in-spec bonus of 12c/kg is payable on top of the received grid price. Friesian bulls are trading from €3.20/kg to €3.30/kg for fleshed O/+, 2=/+ grading bulls under 24 months of age. Bulls lacking flesh are selling back to €3.00/kg.

Solid cow trade: The cow trade remains solid. Fleshed Friesian O3 grade cows are selling from €2.95/kg to €3.10/kg. P+3 grade cows are selling from €2.85 to €2.95/kg with small numbers of mixed lots selling for €3.00/kg.

Marts are experiencing very high throughput of cows. Prices for O grade cows range from €1.40/kg to €1.60/kg, with heavy carcase cows selling to €1.70/kg.

P grading cows and those requiring significant further feeding are selling back to €1.30/kg. Slaughter-fit R grade cows are trading from €1.70/kg to €1.90/kg with U grade cows rising to €2/kg. Factory prices range from €3.20/kg to €3.40/kg with U grade cows selling to €3.55/kg, or a top of €3.60/kg, in plants specialising in heavy cows.

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