Factories have been afforded a temporary reprieve in recent days, with the number of cattle coming on stream improving. Demand and competition is still strong, but the mini-flush in numbers has allowed plants to steady the trade after last week’s lift in price.
Factories have been afforded a temporary reprieve in recent days, with the number of cattle coming on stream improving. Demand and competition is still strong, but the mini-flush in numbers has allowed plants to steady the trade after last week’s lift in price.
A wide differential still exists in what factories are willing to pay, with a difference of 10c/kg in some cases.
Steers are selling in the main on a base of €3.95/kg, but frequent sellers with greater negotiating power are securing an extra 5c/kg.
There have also been a small number of deals completed at a base of €4.05/kg, or the same equivalent when allowances on transport are factored in.
A similar trend is evident for heifers. Base quotes are €4.05/kg in most plants, but, again, some sellers operating at the top of the market are negotiating 5c/kg to 10c/kg higher.
Last week’s kill reduced 1,386 head to 30,330, with heifers recording the greatest fall of 809 head.
While agents report higher numbers on hand this week, their longer-term projections are for numbers to tighten significantly once more farmers empty sheds.
Strong cow demand
Demand for cows continues to strengthen, with greater activity in the market marginally increasing throughput by 165 head to 6,295.
The difference in prices paid to sellers is even greater than that for steers and heifers. P+3 grading cows are trading as low as €3.00/kg for individual or small lots, rising to €3.15/kg for greater numbers and as high as €3.30/kg where traded in mixed batches by large-scale finishers or dealers handling large numbers.
Likewise, O grades range from €3.20/kg to €3.40/kg at the top of the market, while R grades are selling in general from €3.40/kg to €3.55/kg, with higher paid in cow-specialist plants for very good-quality mixed batches of R and U grades. Deals are also being given on mixed batches of R and U grading bulls at €4.00/kg to secure sales.
Bulls traded in small numbers are moving at a price of €3.90/kg for R grades and €3.95/kg to €4.00/kg for U grades.
Weight allowances vary depending on the seller, the number of animals exceeding the preferred carcase weight limit and the size of the sale group.
Some plants are imposing a carcase weight cut-off of 430kg to 450kg and reducing prices thereafter by 5c/kg to 10c/kg, while others are forgoing cuts on small numbers rising to as high as 480kg carcase weight.
Vibrant NI trade
The improvement in the Northern Ireland trade in the last couple of weeks continues. Base quotes are largely unchanged at a U-3 base quote of £3.42/kg to £3.48/kg or the equivalent of €4.19/kg to €4.27/kg at 86p to the euro and including 5.4% VAT.
More sellers are having success securing a premium above the base price, with prices into the mid-£3.50s paid to producers with significant numbers on offer, while those trading at the top of the market have secured returns rising to £3.60/kg (€4.41/kg) or slightly higher.
As such, the differential to British prices continues to tighten. British prices are following a seasonal downward pattern and have eased by another 1p/kg to 2p/kg in the last week to 10 days.
R4L steers and heifers are approaching an average of £3.55/kg (€4.35/kg).
The AHDB reports the greatest pressure on price in the south of England and Wales.
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