The going rate for in-spec heifers is still €3.65/kg this week, with bullocks trading 5c/kg behind that at a base of €3.60/kg. This is before any in-spec or QPS bonuses are applied.

A base of €3.70/kg is still being paid in isolated deals for heifers where numbers and quality are giving the producer extra negotiating power. Aberdeen Angus and Hereford cattle are in demand, with bonuses of 10c/kg to 15c/kg available for suitable cattle.

It’s a similar story in the bull trade as well this week, with under-16-month bulls trading on a base ranging from €3.50/kg to €3.60/kg on the grid. Older R grading bulls are at €3.50/kg to €3.55/kg, with U grades coming in on average 10c/kg higher at €3.65/kg to €3.70/kg.

There still appears to be some scope to complete deals avoiding penalties on heavy bulls. Lesser-grading dairy-cross bulls are back a little on last week’s quotes and generally trading from €3.35/kg to €3.45/kg.

Some farmers are finding it challenging to get quotes for these dairy-type bulls, with factories still having a poor appetite for bulls in general.

The cow trade is back in most factories by 5c/kg to 10c/kg on last week’s quotes, with P+3 cows trading from €2.90/kg to €2.95/kg. O grading cows are generally moving at €3.00/kg to €3.05/kg. Good R and U grading cows are still trading well, with as high as €3.35/kg to €3.45/kg paid in some plants, again dependent on numbers and quality.

Cows lacking flesh are at the lower end of the pricing scale and farmers should be very careful to quantify potential cuts before sending these cows.

Last week’s kill was recorded at 37,758 head, an increase of 1,258 on the previous week.

Factories are still anxious for prime cattle and are lining up supplies for the next two to three weeks.

Some are also hammering out deals for the second half of November for the Christmas trade.

It’s understood that some UK customers have placed some large orders in advance of a potential no-deal Brexit.

Fears of supply chain issues have spurred beef buyers into action. Factories will likely start to source prime cattle for these contracts in the next two to three weeks. While farmers are concerned about a further lockdown and the effect that could have on food service demand, the reality is that this lockdown is different, with many food service outlets offering take-away services.

With consumers changing buying habits, retails sales of meat have jumped in the last few months and this will help underpin demand in the next six weeks.

Northern comment

The number of cattle exported north for direct slaughter fell last week by 371 head to just 225 cattle. It is early to say if this is due to food service demand concerns due to COVID-19 restrictions or a weekly dip.

Base quotes are rising in Northern Ireland as processing demand for Red Tractor-assured beef grows across the UK.

Plants have added 2p to 6p/kg to quotes, which now stand at 360p/kg (€4.16/kg inc VAT) for U-3 grading prime cattle.

Regular finishers report that 370p/kg (€4.28/kg) is widely available as a starting price for steers and young bulls.

In-spec heifers are moving at 374p to 378p/kg (€4.33 to €4.37/kg) depending on numbers offered.

Quotes on cull cows have eased to 275p/kg (€3.18/kg) as plants prioritise prime cattle throughput, but deals of 300p/kg (€3.47/kg) for good cows are still on offer.