There has been a stand-off in some negotiations in recent days, with factories once again trying to claim the upper hand in sales.
The main processing groups have moved to lower base entry quotes by 5c/kg and are starting negotiations by offering a base of €4.00/kg for steers and €4.10/kg for heifers.
The kill has not jumped massively with last week’s throughput rising 468 head to 31,891.
Getting the numbers
With throughput not a major factor, the deciding element that is likely to dictate whether prices reduce is if factories can source enough cattle without reverting to the higher base quote.
There has already been cracks in this stance, with regular sellers resisting negative price pressure and securing higher prices.
Independent plants with access to a lower supply base are still, in most cases, paying a base of €4.05/kg for steers and €4.15/kg for heifers.
There has been deals completed above this level, but reports indicate these are harder to secure as the week progresses.
Some agents say that producers are not in a rush to move stock given the strength of the trade for store cattle.
Others point out that the only pressure on farmers at present is stemming from the 30-month age limit, with higher numbers of February-born cattle coming into the system.
Date of births are something that producers should be mindful of from here on and it is advisable to go through cattle approaching slaughter weight and reviewing whether animals are on track or need a switch in management.
Last week
Last week’s cow throughput fell marginally by 113 head to 7,711, with demand holding strong and coming out the other side of what has traditionally been a tougher period for trading cows.
Variability still exists between plants, as can be seen in the price tables.
P+3 grading cows are trading from €3.25/kg to €3.35/kg, with O grades to €3.40/kg in general but as high as €3.50/kg has been paid for large numbers moving into plants most active in the trade. R grades remain at a range of €3.50/kg to €3.65/kg, with top prices again 5c/kg higher, while U grades range from €3.60/kg all the way to €3.80/kg for small numbers of heavy fleshed cows. Bulls are trading in the main at a price of €4.05/kg for R grades and €4.15/kg for U grades, with 3c/kg to 5c/kg higher payments that some specialist producers were achieving also becoming slightly harder to negotiate as the week progresses. Bulls less than 16 months are selling on a base of €4.05/kg in the main, but some plants are trying to bring this back to €4.00/kg. NI and British trade
The northern trade is unchanged, with the U-3 base price ranging from £3.60/kg to £3.64/kg.
The sterling to euro exchange rate has settled at a high rate of over 89p in recent days, with Wednesday afternoon’s rate of 89.3p to the euro equating to a price of €4.26/kg to €4.31/kg, including VAT at 5.4%. Regular sellers continue to secure 2p/kg to 4p/kg higher.
Cull cow throughput has increased, but the trade is steady at a range of £2.70/kg to £2.75/kg (€3.18/kg to €3.25/kg) for fleshed O grades, while R grades are 10p/kg higher at an average of £2.85/kg (€3.37/kg).
The AHDB’s latest market report shows British prices steadying at an average of £3.80/kg to £3.82/kg for R4L heifers and steers (€4.49/kg to €4.51/kg). Prices are running 35p/kg (40c/kg) ahead of the same period in 2016.
Read More
Prime cattle quotes holding at 364p/kg
Download the Irish Farmers Journal news app today and get the latest prices for all grades and all factories through the built-in Livestock Tool.
There has been a stand-off in some negotiations in recent days, with factories once again trying to claim the upper hand in sales.
The main processing groups have moved to lower base entry quotes by 5c/kg and are starting negotiations by offering a base of €4.00/kg for steers and €4.10/kg for heifers.
The kill has not jumped massively with last week’s throughput rising 468 head to 31,891.
Getting the numbers
With throughput not a major factor, the deciding element that is likely to dictate whether prices reduce is if factories can source enough cattle without reverting to the higher base quote.
There has already been cracks in this stance, with regular sellers resisting negative price pressure and securing higher prices.
Independent plants with access to a lower supply base are still, in most cases, paying a base of €4.05/kg for steers and €4.15/kg for heifers.
There has been deals completed above this level, but reports indicate these are harder to secure as the week progresses.
Some agents say that producers are not in a rush to move stock given the strength of the trade for store cattle.
Others point out that the only pressure on farmers at present is stemming from the 30-month age limit, with higher numbers of February-born cattle coming into the system.
Date of births are something that producers should be mindful of from here on and it is advisable to go through cattle approaching slaughter weight and reviewing whether animals are on track or need a switch in management.
Last week
Last week’s cow throughput fell marginally by 113 head to 7,711, with demand holding strong and coming out the other side of what has traditionally been a tougher period for trading cows.
Variability still exists between plants, as can be seen in the price tables.
P+3 grading cows are trading from €3.25/kg to €3.35/kg, with O grades to €3.40/kg in general but as high as €3.50/kg has been paid for large numbers moving into plants most active in the trade. R grades remain at a range of €3.50/kg to €3.65/kg, with top prices again 5c/kg higher, while U grades range from €3.60/kg all the way to €3.80/kg for small numbers of heavy fleshed cows. Bulls are trading in the main at a price of €4.05/kg for R grades and €4.15/kg for U grades, with 3c/kg to 5c/kg higher payments that some specialist producers were achieving also becoming slightly harder to negotiate as the week progresses. Bulls less than 16 months are selling on a base of €4.05/kg in the main, but some plants are trying to bring this back to €4.00/kg. NI and British trade
The northern trade is unchanged, with the U-3 base price ranging from £3.60/kg to £3.64/kg.
The sterling to euro exchange rate has settled at a high rate of over 89p in recent days, with Wednesday afternoon’s rate of 89.3p to the euro equating to a price of €4.26/kg to €4.31/kg, including VAT at 5.4%. Regular sellers continue to secure 2p/kg to 4p/kg higher.
Cull cow throughput has increased, but the trade is steady at a range of £2.70/kg to £2.75/kg (€3.18/kg to €3.25/kg) for fleshed O grades, while R grades are 10p/kg higher at an average of £2.85/kg (€3.37/kg).
The AHDB’s latest market report shows British prices steadying at an average of £3.80/kg to £3.82/kg for R4L heifers and steers (€4.49/kg to €4.51/kg). Prices are running 35p/kg (40c/kg) ahead of the same period in 2016.
Read More
Prime cattle quotes holding at 364p/kg
Download the Irish Farmers Journal news app today and get the latest prices for all grades and all factories through the built-in Livestock Tool.
This is a subscriber-only article
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