The beef trade remains static. Steers are trading at a base of €3.90/kg, while heifers are trading in the main at €4.00/kg to €4.05/kg. At the top of the market, small numbers of choice heifers continue to trade at a base of €4.08/kg to €4.10/kg. Penalties imposed on out-of-spec steers and heifers remain variable.

Some sellers continue to avoid penalties where the majority of animals traded are in-spec and those deemed out-of-spec are marginally exceeding carcase weights.

The greatest penalties reported are for steers over 36 months of age and killing at carcase weights of 450kg to 500kg. Some plants are cutting the base price by 20c/kg to 30c/kg, with most unwilling to pay these animals on the grid and purchasing flat at €3.60/kg to €3.70/kg. Flat-priced deals for Friesian steers under 30 months compare favourably, selling from €3.70/kg to €3.80/kg for fleshed O=/+ grading stock. Hereford and Angus steers are trading flat at €3.85/kg to €3.90/kg, with O grading heifers from €3.95/kg to €4.10/kg.

Last week’s beef kill reduced 559 head to 33,243. Steer throughput fell by 571 head (11,350), while young bull throughput fell 411 (5,287) and bull throughput fell close to 200 head (440). The reduction in these classes was compensated for by heifer throughput rising 369 head, along with a significant rise in the number of veal calves, which increased from 103 to 273.

Bulls tightening

The bull kill has fallen by just under 1,000 head over the last two weeks, but supplies are still strong at 5,287.

R grades are being quoted at the lower end of the market at €3.75/kg, with most moving at €3.80/kg to €3.85/kg. U grades are trading from €3.85/kg to €3.90/kg. Again, penalties for overweight carcases are variable.

Some plants are paying €3.80/kg for carcases ranging from 450kg to 470kg, with greater cuts thereafter. Friesian bulls are trading from €3.70/kg to €3.85/kg for R grades, with reports that plants are keen on fleshed animals due to their lighter carcase weight. Bulls less than 16 months trading on the grid are selling at a base of €3.85/kg to €3.90/kg.

Cows static

P+3 grading cows continue to trade from €2.90/kg to €3.05/kg, with sellers with high numbers and trading with fleshed O grading cows securing a flat price of €3.15/kg. Small numbers of O grading cows are trading from €3.05/kg to €3.15/kg, with those at the higher end of the market to €3.35/kg. R grades are selling from €3.35/kg to €3.50/kg for heavy fleshed cows, with U grades to €3.55/kg to €3.60/kg.

NI trade steady

The Northern trade is steady, with throughput static at 6,626 prime cattle and 1,843 cows. Quotes are unchanged at a U-3 base of £3.12/kg and £3.14/kg (€4.15/kg to €4.18/kg including VAT). The sterling to euro exchange rate increased 1p to 79p:€1 yesterday. This is further reducing the differential between Irish and British beef prices.

The R4L steer and heifer quote of £3.40/kg is the equivalent €4.52/kg including VAT, compared with €4.58/kg at last week’s exchange of 78p:€1.

Global movements

There are reports of life returning to the Hong Kong and Asian markets for lower-value offal and byproducts. The trade has been under pressure in recent months, added to by the continuation of the Russian ban. With plants struggling to move high volumes, coldstores were full, putting considerable pressure on the trade.

Industry reports also show the US manufacturing market improving after a sharp fall in trade before Christmas. This is on the back of reduced Australian supplies forecast for 2016.