Monday beef prices: positive trade as throughput keeps flowing

The beef trade remains vibrant, with high levels of throughput continuing to dominate.

Early estimates suggest that last week’s kill is running on a similar high trend than the week previous, with some industry sources remarking that the kill could record another lift in throughput.

If this is the case, it could put the beef kill over 40,000 head for the first time in over a decade.

A big positive of the trade is sustained strong demand, with factories more than happy to handle the higher kill.

It is putting factories in prime position to take advantage of persistent firm demand from UK and European markets, along with exports to third countries.

Prices

There is no real change on the price front. Base entry prices for steers is €3.85/kg, with regular sellers and those with stronger negotiating power securing a base of €3.90/kg or slightly higher in cases.

Heifers are starting on a base of €3.95/kg, but there is more scope to push prices, with a base of €4.00/kg to €4.05/kg more commonly secured by regular sellers.

Demand for bulls is also robust, with throughput from specialist finishers aiding factory throughput. There is a wider differential on price evident on bulls between producers handling a small number and those finishing over 100 head annually.

Prices range from €3.95/kg to €4.05/kg for U grading bulls, with finishers in the best selling position securing €4.10/kg.

R grades are trading from €3.85/kg to €3.95/kg, while there is a similar large differential on Friesian bulls, with prices ranging from €3.65/kg to €3.80/kg. Bulls less than 16 months and trading on the grid are selling on a base of €3.85/kg to €3.90/kg.

Cows

Cow prices are unchanged, with numbers coming in greater frequency from dairy herds. A higher percentage of these are making their way to the ring than in the past, facilitated by the ending of brucellosis testing.

P+3 grades are selling on average from €3.05/kg to €3.25/kg, with O grades from €3.30/kg to €3.45/kg.

There is continued demand for heavy R and U grading cows, particularly in cow-specialist plants. R grades are selling from €3.45/kg to €3.55/kg, with U grades another 10c/kg higher.

British trade climbing

While movement is minor, the British trade continues to recover, with the AHDB reporting an improvement in steer and bull prices.

R4L steers lifted 0.8p to £3.80/kg (€4.55/kg at 88p to the euro and including VAT at 5.4%), while the overall steer price lifted over 3p/kg.

Heifers are steady at £3.79/kg (€4.54/kg incl VAT), while R3 young bulls increased nearly 4p/kg to £3.65/kg (€4.37/kg incl VAT).

Meanwhile, the northern trade remains steady, with U3- base quotes unchanged at £3.54/kg to £3.56/kg (€4.24/kg to €4.26/kg incl VAT). Cow prices continue to range from £2.60/kg to £2.80/kg for good O and R grading cows.

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