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The downward pressure on beef prices has largely blown over in the last week, with prices firmer if anything.
Sellers are being helped by tighter numbers, with last week’s kill falling 1,568 head to 32,114. The reduction in the kill was driven by heifer throughput falling 854 head to 8,224, while the seasonal reduction in bull throughput continues, with 594 fewer bulls killed. This has seen the bull kill fall from 4,563 to 3,182 in the space of just two weeks.
Steers are moving in the main at a base of €4.05/kg, with no reports of plants trying to purchase at a base of €4.00/kg. Sellers with greater negotiating power are also having more success of securing a base of €4.08/kg to €4.10/kg or allowances on transport costs. A similar situation is present for heifers, with most moving at a base of €4.15/kg and small numbers trading at the higher end of the market on a base of €4.20/kg.
Lower numbers
Despite lower numbers of bulls on offer, agents are trying to keep a lid on price. This is leaving most bulls continuing to trade for €4.05/kg for R grades and €4.10/kg to €4.15/kg for U grades. Again, there are small numbers securing a higher base. Bulls less than 16 months old and trading on the grid are trading on a base of €4.05/kg to €4.10/kg.
The cow trade is solid. P+3 grading cows are selling from €3.20/kg to €3.35/kg, with prices varying depending on the plant purchasing and the number of animals on offer. Similarly, O grades are trading mainly in small numbers from €3.30/kg to €3.35/kg, but prices of €3.40/kg to €3.45/kg are being paid at the top of the market. R grades are selling from €3.45/kg to €3.50/kg and, as can be seen in the official price table, U grading cows are selling to a top of €3.70/kg in cow specialist plants.
NI and British trade
NI has two bank holidays this week, with plants closed Wednesday and some also closed on Thursday. Mart sales are also at a minimum. The majority of cattle required when plants reopen are already sourced at a U-3 base price of £3.62/kg to £3.64/kg.
Sterling moved to 89p to the euro on Wednesday, which is a move in the wrong direction in terms of Irish exports to the UK, but boosts both NI and Scottish exports.
This is leaving the equivalent base price at €4.29/kg to €4.31/kg including VAT at 5.4%. Some plants are trying to take advantage in the break in trading to reduce the U-3 base quote back to £3.60/kg (€4.26/kg) but it is early days to tell if this will materialise, with very little trading being completed.
Numbers moving north and south for direct slaughter remain small, with just 166 cattle exported north last week which was balanced with 176 cattle coming south.
The fact that British beef prices continue to increase is helping the competitiveness of Irish beef exports.
R4L heifer prices are averaging £3.77/kg to £3.78/kg (€4.46/kg to €4.48/kg), with AHDB reporting average R4L steer prices approaching £3.80/kg (€4.50/kg).
This is a 35p/kg to 40p/kg (41c/kg to 47c/kg) increase on the same period in 2016. Cows have stabilised at £2.70/kg to £2.80/kg (€3.20/kg to €3.32/kg) for fleshed O grades while R grade young bulls average around £3.60/kg (€4.26/kg).
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