There has been some upward movement in the beef trade over the last week, with prices rising by an average of 3c/kg to 5c/kg.
There has been some upward movement in the beef trade over the last week, with prices rising by an average of 3c/kg to 5c/kg.
The lift comes in response to numbers starting to tighten, with factories increasing prices to secure deals and fend off competition from other interested buyers.
The greatest movement has been for heifers. The general price being offered to regular sellers or those with significant numbers on hand is a base of €4.05/kg.
However, sellers trading at the top of the market are securing a base of €4.08/kg to €4.10/kg, with a growing number of sellers achieving the €4.10/kg base as the week goes on.
Some sellers are also securing allowances on transport, with factories reluctant to exceed a base of €4.10/kg.
The price increase is welcome, but some finishers have commented that prices are now only back to levels achieved in July, with further upward movement needed to cover winter finishing costs.
A high percentage of steers are moving at a base of €3.95/kg, with producers having more difficulty in securing a base of €4.00/kg than higher prices for heifers. Again, there are more sellers pushing to secure this higher base as the week goes on.
Steers recorded the greatest reduction in throughput last week, reducing 817 head to 12,769. This was closely followed by 730 fewer (8,413) cows being processed, while heifer throughput reduced 460 head to 11,072.
The fall in the overall kill was limited to 1,262 fewer cattle processed (39,367) by young bull throughput rising 861 head to 6,545. This is the highest young bull kill of the year, with throughput at present aided by earlier housing dates in autumn.
Bulls have also experienced a lift in price, with R grades rising to €3.95/kg to €4.00/kg, while U grades have moved up to €4.05/kg to €4.10/kg. There are reports of €4.15/kg being paid for U grading bulls, but, in cases, this comes with tighter carcase weight limits, which are generally not currently an issue.
Bulls less than 16 months and trading on the grid are selling on a base of €3.95/kg, with some specialist finishers securing a base of €4.00/kg.
The cow trade is also being boosted by rising beef prices and continued strong demand for manufacturing beef. P+3 grading cows are selling from €3.10/kg to €3.30/kg, with O grades ranging from €3.35/kg to €3.45/kg. R grades are selling anywhere from €3.45/kg to €3.60/kg, depending on the purchasing plant, with U grades rising to €3.70/kg and higher.
Northern trade
Some plants moved to reduce the U-3 base by 2p/kg last week, but this has not materialised in cattle moving at a lower price, with the U-3 base quote offered for steers and heifers ranging from £3.52/kg to £3.56/kg. This is the equivalent of €4.00/kg to €4.05/kg at 88p to the euro and €4.22/kg to €4.27/kg when VAT is factored into the equation.
Last week’s deadweight prices reported by LMC show that regular sellers continue to secure much higher prices, with U3 steers averaging £3.64/kg (€4.36/kg incl VAT) for steers and 1p/kg higher for heifers.
The British beef trade remains robust, with prices for R4L steers and heifers rising marginally by an average 0.5p/kg to 1p/kg. AHDB price analysis for the week ending 9 December shows R4L steers and heifers trading at an average of £3.77/kg or €4.52/kg including VAT at 5.4%. R3 young bulls are moving at £3.60/kg (€4.31/kg incl VAT) with O+ 4L cows averaging £2.73/kg (€3.27/kg).
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Northern view: beef prices firm as weather slows cattle supply
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