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Beef finishers are resigned to there being no significant seasonal price rise for a third consecutive year. High throughput, with last week’s kill of 35,247 head, is leaving factories largely in pole position in price negotiations.
In saying that, despite processors reporting Christmas orders being accounted for, demand remains firm, with a strong factory appetite to continue operating at peak capacity. The majority of cattle are trading on a base of €3.70/kg for steers and €3.80/kg for heifers, with sellers operating at the higher end of the market securing 5c/kg higher or deals to entice sales.
Plants with less access to feedlot cattle or fewer relationships with large-scale finishers have been more active in sourcing cattle since the start of the week. This comes as the last supplies of cattle finished off grass are moved in response to rainfall and deteriorating ground conditions. There are reports of more demand in particular for Angus and Hereford stock, with plants competing with butcher/wholesale buyers and offering flat-priced deals, including bonuses, of €3.95/kg to €4.05/kg for O=/+ grading heifers.
For those supplying traditional breeds through producer groups, it is worth noting that longer-term booking can unlock higher bonuses.
Last week’s throughput fell 206 head, but the fall would have been greater had bull throughput not lifted 385 head to 4,708. The bull kill has increased by over 1,000 head in the last three weeks, stemming from higher numbers of U-16 months bulls coming on stream and 2015-born bulls being finished after an intensive finishing period.
Bulls less than 16 months and trading on the grid are selling in general at €3.70/kg. Older bulls are trading in the main from €3.55/kg to €3.65/kg for O grading dairy-bred bulls, €3.70/kg to €3.75/kg for Rs and €3.80/kg to €3.85/kg for Us. Specialist finishers are securing 5c/kg higher.
The cow kill remains solid, boosted by cows continuing to come in significant numbers from dairy herds.
P+3 grades remain at a price range of €2.85/kg to €3.00/kg, O grading Friesians from €2.95/kg to €3.10/kg and 5c/kg to 10c/kg higher for better-quality O grading suckler cows. R grading cows are selling from €3.15/kg to €3.25/kg, with U grades to €3.30/kg in general and 5c/kg to 10c/kg higher in cow specialist plants.
Northern trade
The northern trade remains solid, although some agents report slightly easier demand in some areas with less pressure to fill Christmas orders. Again, plants are keen not to lose out on any supplies.
Base quotes for U3- steers and heifers remain at £3.44/kg to £3.48/kg (€4.31/kg to €4.36/kg including VAT), but sellers with large offerings and cattle ticking all the boxes on specification remain in a position to secure prices rising to the mid-£3.50s.
The cow trade is steady, with O grades from £2.40/kg to £2.55/kg (€2.86/kg to €3.19/kg) and R grades from £2.55/kg to £2.65/kg in general (€3.19/kg to €3.32/kg).
The AHDB reports British prices steadying on the back of supplies balancing better with marginally reducing demand. R4L steers and heifers continue to trade on average from £3.65/kg to £3.70/kg (€4.56/kg to €4.63/kg incl VAT).
Live exports
The Braham Express is due in Greenore on Sunday to collect the final load of cattle for Viastar Ltd for live export to Turkey, which will bring exports close to the 20,000 target by year-end. The outlet has helped autumn sales and has minimised the drop in exports, which, at 134,965 up to the start of December, are running about 37,000 behind 2015 levels.
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