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Tightening supplies of slaughter-fit cattle is demonstrated in last week’s kill falling 1,882 head to 33,952. The drivers of the reduction are 660 fewer bulls, 560 fewer young calves, 360 fewer steers, 240 fewer heifers and a marginal drop of 56 cows.
Throughput still remains relatively strong and the potential for prices to increase will be influenced by how bad factories want to continue operating with higher throughput levels, which looks likely, and whether supplies will continue to tighten.
This week’s four-day kill has reduced pressure on some plants to source stock, but for others it will make no real difference, with plenty of capacity to increase processing in the other four days.
Sellers handling higher numbers of heifers are in a better negotiating position, with more reports of a base of €3.95/kg being paid. Some continue to trade at a base of €3.90/kg, but prices are moving upwards.
A similar situation exists for steers, with a significant percentage trading at a base of €3.80/kg. However, more sellers are securing a base of €3.85/kg.
The bull kill has fallen significantly in the last three weeks. U grades are trading in greater frequency at €3.85/kg to €3.90/kg and a top of €3.95/kg.
R grades are trading in the main for €3.80/kg, with specialised finishers handling higher numbers securing a flat price of €3.90/kg in cases where the group killed comprises mainly of U grades. Weights are also being relaxed to secure deals.
O grading Friesian bulls are a rarity at present, with prices ranging from €3.55/kg to €3.60/kg for lesser-quality O- lots, rising to €3.70/kg for better-quality O=/+ bulls. Bulls less than 16 months and trading on the grid are selling on a base of €3.80/kg to €3.85/kg.
Cow prices remain unchanged, with P+3 grades ranging from €2.90/kg to €3.05/kg, while O grades are trading from €3.05/kg to €3.20/kg.
Producers with cows lacking flesh should ask about price reductions, with young feeding cows in particular meeting a firm mart trade.
Sellers with large numbers of 25 to 30-plus cows are securing 5c/kg to 10c/kg higher in plants very active for cows. R grades are trading from €3.35/kg to €3.50/kg, while U grades are selling to a top of €3.55/kg to €3.60/kg.
NI trade unchanged
Prices in the North remain unchanged, with factories quoting anywhere from £3.38/kg to £3.46/kg. Despite the lower quotes, the average seller handling smaller numbers is securing £3.42/kg to £3.46/kg. This equates to €4.14/kg to €4.19/kg at today’s exchange rate of 87p to the euro and including 5.4% VAT. Producers with greater negotiating power are securing prices into the low-£3.50s.
British prices have steadied after a few weeks of marginal but continuous decline. The AHDB reports R4L steers and heifers trading at an average of £3.60/kg (€4.36/kg). It also reports the cow trade rising by 2p/kg to 3p/kg to an average of £2.50/kg (€3.02/kg).
Live exports
Calf exports reached 8,478 for week-ending 5 March. This includes 4,297 calves exported to the Netherlands and 3,012 to Spain, while it was also positive to see 833 calves exported to Belgium for the first time in two years.
Calf exports to 5 March, at 20,767 head, are running 7,355 above 2016. Purcell Brothers have also stepped up purchasing for Turkey and are seeking bulls weighing 250kg to 320kg born after May 2016.
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