The main processing plants are focused in their attempts to bring steers back to a base of €3.85/kg and heifers to €3.95/kg. Agents remain anxious for stock and are keen not to lose out on any deals.
However, they have been forced to lose out on steers and heifers in cases, with some independent plants equally keen to boost throughput and offering a 3c/kg to 5c/kg higher quote or allowances on transport to secure deals.
Some plants are trying to use talk of lower prices to speed up or finalise deals, but sellers should note that prices have not dropped to these levels.
Last week’s kill reduced from 32,773 to 31,228, with one day’s less processing not having much of an influence on throughput.
Steers continue to dominate the kill, with 15,067 handled, while heifers are steady at 7,620 head.
Cow throughput fell by 892 to 5,961, with bull throughput falling by close to 200 head to 1,998, the lowest level this year.
Factories are also trying to significantly reduce cow prices, with P+3 grading cows trading from €3.20/kg to €3.25/kg, while O grading cows are selling from €3.30/kg to €3.35/kg.
R grades are generally moving from €3.40/kg to €3.45/kg, with U grades from €3.50/kg to €3.60/kg. Plants most active in the cow trade continue to pay above the general quotes, as reflected in the factory price tables.
Similar to cows, there is a big variation in bull prices between individual sellers handling small numbers and specialist finishers.
R grading bulls are trading from €3.85/kg to €3.90/kg, with U grades from €3.95/kg to €4.00/kg, while a top of €4.05/kg has also been paid for top-quality U grading bulls.
O grades are 10c/kg to 15c/kg lower than R grades, but numbers are small, with few Friesian bulls in the system.
Bulls less than 16 months and trading on the grid are being offered a base quote of €3.85/kg to €3.90/kg. This excludes the 12c/kg quality payment scheme bonus for in-spec animals.
Northern trade
Northern agents are also trying to ease back prices by 2p/kg to 4p/kg, with some plants trying to open negotiations at a U-3 base quote of £3.58/kg to £3.60/kg.
Sterling has weakened further and at Wednesday’s exchange rate of 91p to the euro, this equates to €4.15/kg to €4.17/kg, including VAT.
However, numbers are tight, with last week’s kill falling by over 700 head to 5,412. This has left regular sellers in a firm position, with plenty of deals completed in the mid-£3.60s.
Cow prices are solid at £2.90/kg to £3.10/kg (€3.36/kg to €3.59/kg) for good O and R grading cows. This is providing the opportunity for small numbers to continue to head north for direct slaughter, with 300 cattle imported last week.
The British trade strengthened by 1p/kg to 2p/kg, with R4L steer and heifer prices averaging £3.82/kg to £3.84/kg (€4.42/kg to €4.45/kg).
Throughput of cattle is reported as solid by the AHDB, at just over 29,000 head, with the cow kill unchanged at 9,103 head.
O4L grading cows average £2.77/kg or the equivalent of €3.21/kg including VAT.
The differential between Irish and British prices is growing to over €120 on an equivalent 360kg steer carcase. Meanwhile, Bord Bia reports the Italian R3 young bull price at €3.86/kg and U3 bulls at €4.15/kg, excluding VAT. The trade there remains ahead of France and Germany where prices are at €3.78/kg, ex-VAT.