There is no real change in beef prices with supplies finely balanced with demand. Last week’s kill recovered after ex-hurricane Ophelia, rising 1,302 head to 37,443.
Many had thought that the kill would remain at a lower level, with housing of cattle tightening supplies, particularly steers.
While the steer kill tightened, falling 1,098 to 15,893, cow throughput increased 1,460 to 8,751 head. Young bull throughput increased 539 head to 3,405, while heifer throughput rose 350 to 8,830 head.
The increase in numbers has allowed factories to maintain their stance on prices offered. A high percentage of steers and heifers are trading on a base of €3.75/kg and €3.85/kg respectively.
Factories are very reluctant to exceed this level, but regular sellers handling large numbers are having some success in securing an extra 2c/kg to 5c/kg, with the top base prices reported at €3.80/kg for steers and €3.90/kg for heifers. Where higher prices are non-negotiable, some plants continue to offer allowances on transport costs.
Agents report that the inclement weather of recent weeks had sent more cattle their way, with some bull finishers in the east of the country moving bulls to make room for housing cows, while heifers that were housed early due to bad weather were also being drafted. The upturn in weather over the last week has reduced pressure on finishers, with some agents reporting some finishers easing throughput which may reduce supplies in the coming week.
This will also be dependent on whether the cow kill stays at its current level. Cow prices are unchanged, but it should continue to be noted that there is a wide differential between prices paid.
P+3 grade cow prices are starting below €3.00/kg in plants with little interest in cows and rising to €3.10/kg to €3.15/kg at the higher end of the market, with reports of higher paid to specialist finishers. Fleshed O grade cows range in general from €3.25/kg to €3.35/kg.
It is also worth noting that there is a big differential in prices paid for light-carcase cows lacking significant flesh.
Under-fleshed cows are being penalised anywhere from 40c/kg to 50c/kg for better-quality cows falling into the fat class of 1=/+ to 70c/kg to €1/kg for poorly conformed and under-fleshed cows.
Like cows, it is important to ensure bulls are adequately covered, with significant cuts averaging 20c/kg to 30c/kg and far higher in cases where bulls are being supplied in small numbers from sellers who are not regular suppliers.
Bulls are trading in general at a range of €3.80/kg to €3.85/kg for R grades and €3.90/kg to €3.95/kg for U grades, although there are some specialist finishers supplying large numbers securing 5c/kg to 10c/kg higher.
Bulls less than 16 months and trading on the grid are selling on a base of €3.75/kg to €3.80/kg. This excludes the 12c/kg QPS bonus.
Northern trade
There is continued strong demand, with most steers and heifers trading on a U-3 base of £3.52/kg to £3.54/kg.
With sterling strengthening to 87.4p yesterday, this equates to €4.03/kg to €4.05/kg or €4.25/kg to €4.27/kg where 5.4% VAT is included.
O grading cows are selling from £2.60/kg to £2.80/kg (€3.14/kg to €3.38/kg incl VAT), with good R grading continental cows rising to £3.00/kg (€3.62/kg).
The AHDB reports R4L steers easing 4p/kg to £3.76/kg (€4.53/kg including VAT), while R4L heifer prices eased by 2p/kg to £3.74/kg (€4.50/kg incl VAT).