This is a subscriber-only article
The beef trade continues to weather negative price pressure being imposed by some plants. Steers are selling in the main at a base of €4.05/kg while heifers are selling on a base of €4.15/kg.
Some plants are still trying to purchase at a 5c/kg lower base but this approach is limited in success with the plants in question having to increase quotes to compete or face lower throughput. At the higher end of the market, deals have been completed at a base of €4.10/kg for steers and €4.20/kg for heifers.
Prices are running about 20c/kg ahead of the same period in 2016 with factories gaining the upper hand in the wake of the Brexit vote and easing prices back 5c/kg to 10c/kg over a number of weeks.
The big difference this year has been strong market demand and a more balanced trade for all elements of the carcase.
Manufacturing beef in particular has benefited from lower supplies of beef on the global market and a recovery in demand from markets outside the UK and further afield than the EU (Philippines and Hong Kong).
Bull trade
The bull trade remains solid with lower seasonal supplies helping to insert some competition into the trade.
The majority of R and U grade bulls are selling for €4.05/kg and €4.15/kg, respectively, with regular sellers with greater negotiating power securing 3c/kg to 5c/kg higher.
Bulls less than 16 months and trading on the grid are moving at a base price of €4.05/kg with small numbers at a base of €4.08/kg to €4.10/kg.
The mart trade remains a good alternative for farmers with small numbers of slaughter-fit cows and struggling to secure favourable returns.
It is important to do the sums and decide on the best route to market. P+3 grading cows continue to sell from €3.20/kg to over €3.30/kg with O grades from €3.30/kg to €3.40/kg and 5c/kg higher in plants specialising in the cow trade.
R grades are selling from €3.45/kg to €3.55/kg with heavy U grade cows still sought after and selling at the top of the market from €3.60/kg to over €3.70/kg.
British prices keep rising
British prices have maintained their gradual upward momentum, rising by 1p/kg to 2p/kg again in the last week. AHDB reports average R4L steer and heifer prices now hitting £3.80/kg. Sterling has eased back after topping 89p to the euro last Wednesday with Monday evening’s exchange rate at 87.8p to the euro. This leaves British R4L prices averaging the equivalent of €4.56/kg including VAT at 5.4%.
Live exports
Meanwhile, the latest Department of Agriculture live export figures show 2,468 bulls exported to Turkey in the week ending 6 July. This included 1,312 bulls aged from three to 12 months of age and 1,151 bulls aged between 12 and 21 months of age. Another boatload of heavier finishing bulls is set to be exported next week. The shipment to Turkey boosted exports for the week to 4,142. Spain continues to take significant numbers with 707 head exported. This includes 495 calves, 82 weanlings and 124 stores. Italy also continues to import significant quantities of calves with 248 exported live for the week ending 9 July, along with 92 weanlings, 63 stores and 18 animals over 21 months of age. The other notable exports were 310 head exported north, of which 166 were destined for direct slaughter.
SHARING OPTIONS: