The beef trade remains under significant pressure, with factories again moving to reduce the base price by another 5c/kg. Steers are being quoted a base of €3.95/kg in many plants, with heifers being offered a base quote of €4.05/kg. There are small numbers moving at last week’s 5c/kg higher base, but this is becoming much harder to negotiate.

Bulls are also starting to face renewed negative pressure, with bulls that factories deem out of spec facing the greatest challenge. Before now, producers were having some luck in getting additional allowances on weight or a similar price for an odd bull falling below the desired fat score of 2+ and higher.

The carcase weight limit for bulls less than 16 months and trading on the grid has tightened in some cases to 400kg, with others becoming much stricter at 420kg to 430kg.

Bulls lacking flesh are in cases facing cuts of 10c/kg to 20c/kg or greater where bulls are exceeding 24 months of age. Bulls less than 16 months are being offered a base of €3.95/kg, while older bulls less than 24 months of age are trading on average from €3.95/kg to €4.05/kg for U grades.

Price variation

The wide differential between prices paid to producers handling large numbers of cows and individual sellers with small numbers remains very significant. Quotes for P+3 grading cows are starting as low as €3.10/kg this week, but up to €3.25/kg and higher is being paid. Similarly, fleshed O grading cows range from €3.25/kg to €3.35/kg on average, but prices can vary by 15c/kg to 20c/kg.

As such, marts with a strong dry cow trade remain a good sales outlet for those finding it hard to deal with factories for good-quality cows. Well-conformed and fleshed continental cows remain a relatively good trade, with cow throughput currently balanced very much in favour of light-carcase and poorly covered cows. Prices for these poor-quality cows are falling back as low as €2/kg to €2.40/kg.

Slower northern trade

There is also pressure on the northern trade. Most plants are quoting a U-3 base of £3.54/kg to £3.56/kg. This is the equivalent of €4.00/kg to €4.02/kg at 88.6p to the euro and €4.21/kg to €4.23/kg including VAT at 5.4%.

The volume of deals being completed this week is lower, with plants and marts closed for the holiday period (12 July).