Beef Trends: tighter supplies lifts base prices by 5c/kg

The supply-demand balance continues to edge in farmers' favour, with agents having to work harder to get their hands on required numbers.

The increase in competition between buyers has added another 5c/kg to base quotes, with bullocks moving from a base of €5/kg and heifers €5.05/kg.

Sellers with higher numbers are securing 5c/kg more, while flat-priced deals ranging from €5.30/kg to €5.40/kg have been secured for significant numbers of continental cattle, with Angus lots hitting a top of €5.40/kg to €5.50/kg.

Agents are also more open to doing deals covering part or full transport costs, while talk of cuts on carcases deemed overweight have by and large disappeared.

Improvement

There are some cattle coming on stream before hitting 30 months of age, but outside of this the recent improvement in grass growth rates has eased pressure on farmers to move stock.

Cow throughput is also lower than possibly anticipated, with the recent lift in grass growth rates also reducing pressure to lower demand.

Reports indicate there is also an appetite among dairy farmers to milk cows on to try to compensate for lower sales output.

Cow prices

There is a significant differential between prices for heavier, better-fleshed cows and light-carcase cows lacking significant flesh.

Good P+3 grading cows are upwards of €4.20/kg, with a significant percentage falling within a range of €4.15/kg to €4.25/kg, while better-quality O grading cows are selling from €4.30/kg to €4.40/kg.

P1 grading cows are selling back to €2.80/kg to €3.20/kg, with P2 grades recording a wider price range from €3.50/kg for P-2 cows to €4/kg for P=2= cows.

R grading cows continue to range from €4.70/kg to €4.80/kg, with top prices for young cows and U grades anywhere from €4.80/kg to €5/kg.