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Beef throughput finally seems to be showing signs of starting to slacken, following weeks of higher than normal processing activity. Factories appear to be in a good position with regards to supplies for the first few days of this week, but several agents have said their phones have become much quieter in recent days. This is putting question marks on numbers available heading into next week, which could be exactly the catalyst the trade needs to gain some upward price momentum.
Deals completed today, by and large, remain unchanged, with steers trading on a base of €4.05/kg to €4.10/kg and heifers moving from €4.15/kg to €4.20/kg. As is the case at this stage of the year, agents are much more eager to tie into large groups coming on stream and do not mind giving a few cents extra if it helps to keep a lid on prices paid in deals involving smaller numbers.
Factories with access to feedlot or contract cattle are also moving higher numbers to supplement throughput, with the ABP group particularly active in recent weeks in purchasing forward stores suitable for quick turnover.
Bull trade
The bull trade is solid. Top prices of €4.10/kg for R grading young bulls and €4.20/kg for U grades were secured last week by a small cohort of specialist finishers. With producers sensing greater selling power, prices are moving towards a range of €4.05/kg to €4.10/kg for R grades and €4.15/kg to €4.20/kg for U grades.
Bulls less than 16 months and trading on the grid are on a base of €4.05/kg, but there are some finishers pushing for a higher base and achieving €4.08/kg to €4.10/kg or allowances on transport. Finishers should also take account of carcase weight, with some plants only paying a higher base for bulls delivering a carcase weight below 420kg to 430kg.
Cows remain a great trade. P+3 grading cows are selling anywhere from €3.30/kg to €3.45/kg, with O grades from €3.40/kg to €3.60/kg. R grading cows are trading, in general, from €3.60/kg to €3.70/kg, but specialist plants have paid up to €3.80/kg and higher for heavy R and U grading cows.
Northern trade rising
The northern trade continues to creep upwards, with agents facing a similar challenge in sourcing numbers heading into next week. The U-3 base entry quote is unchanged at £3.60/kg or the equivalent of €4.10/kg at a sterling exchange rate of 87.8p to the euro and €4.32/kg VAT inclusive at 5.4%.
Sellers with numbers on hand are pushing prices towards the mid-£3.60s, while those trading at the top of the market are having more success in pushing prices towards a base of £3.70/kg (€4.44/kg including VAT).
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