Factory agents have been more eager in the last week to source cattle. The trade lies in the midst of a period of tighter supplies, with shed-finished cattle disappearing and grass-finished cattle not yet coming on stream in any great number. As such, agents are working hard not to let any cattle slip through their grasp, while trying to keep prices paid in check.

Average prices continue to creep upwards, with sellers with high numbers on hand and stronger negotiating power testing current prices.

Steers are trading in the main on a base of €4.15/kg, but there are an increasing number of sellers with greater negotiating power starting to secure a base of €4.18/kg to €4.20/kg at the upper end of the market.

Likewise, the general price paid for heifers is a base of €4.25/kg, but, again, sellers operating at the higher end of the market are having more success in securing a base of €4.28/kg to €4.30/kg. Some agents are willing to offer allowances on transport costs in a bid to close deals while keeping price in check.

Bull prices are also creeping upwards. R grade bulls are trading from €4.10/kg to €4.15/kg where traded on a flat price with U grade bulls, while at the higher end of the market, U grade bulls have pushed upwards to €4.20/kg.

Discussions on carcase weight have become a secondary issue in most deals and only seem to be cropping up, if at all, for bulls weighing over 450kg to 480kg, with limits varying significantly between plants. The base for bulls less than 16 months has also increased by 3c/kg to 5c/kg, with the majority trading on a base of €4.10/kg, while a small number of sellers are gradually moving to a higher base of €4.15/kg.

10,208 cows processed

Last week’s cow kill reached record levels of 10,208 head. Factories remain keen, despite the higher numbers, to use cows to underpin throughput, with reports of reduced numbers this week helping competition.

However, there is a huge variation of 10c/kg to 15c/kg in prices between plants, as demonstrated in the Department’s official price tables. P+3 grading cows are trading from €3.35/kg to €3.48/kg, with O grades from €3.40/kg to €3.60/kg.

R grade cows are selling from €3.60/kg to €3.75/kg, with heavy fleshed U grades still selling to €3.80/kg.

Booming trade

The trade in Northern Ireland and Britain remains exceptionally strong. U-3 base quotes range from £3.58/kg to £3.64/kg.

The weakening in sterling in recent weeks to 87p to the euro has also tightened the differential to northern and British prices, with this U-3 base price equating to €4.34/kg to €4.41/kg.

Regular sellers continue to secure a premium of 4p/kg to 8p/kg. The prime cattle kill, at 136,314 head, is running 2,134 head above last year’s levels.

The strong kill is being helped by farmers moving cattle at a younger age, with the LMC reporting the average age of slaughter in the six weeks previous to 21 May reducing by two months for steers to 23.7 months and one month for heifers to 23.9 months.

British prices are solid, with R4L steers and heifers averaging £3.66/kg to £3.68/kg or the equivalent of €4.43/kg to €4.46/kg.

This is the average return and not quoted prices exclusive of bonus payments.

Meanwhile, cows are averaging £2.70/kg or €3.27/kg for O4L cows, with R3 young bulls trading from £3.48/kg to £3.52/kg or €4.22/kg to €4.26/kg.