Factory quotes: Beef trade generally steady this week

This week’s factory quotes for finished beef cattle sees most outlets hold their price offerings at the same level as last week, with the highest price quotes reported last week, still available for this week.

Despite this, some processors have taken 5c/kg off their price offerings for this week but are still remaining competitive on price for prime cattle. There remains a big variation in cow prices between some outlets.

Last month (August) saw an unusual trend occur for the late summer beef trade, in that prices actually increased contrary to the traditional trend of price declines, which are generally seen in late summer.

The positive tend in the beef trade last month is having a positive effect on prices for store cattle, also as farmers selling finished cattle are returning to the mart ring with plenty of buying power, and domestic cattle buyers are also having to compete with strong export demand.

While this is good news for farmers with cattle to sell, it is making present market conditions more challenging for farmers with cattle to buy and especially for winter beef finishers who also have to contend with higher-cost systems and uncertain financial returns.

Factory quotes: Heifers and steers

Beef heifers are being quoted at prices ranging from €5.05 -5.10/kg on the grid in general this week with €5.15/kg on the grid available at the higher-end of the price scale.

Steers (bullocks) are being quoted at prices ranging from €5.00-5.05/kg on the grid in general, with €5.10/kg on the grid available at the higher-end of the price scale.

Breed bonuses on eligible Hereford and Angus heifers and steers range in value from 5c/kg-30c/kg depending on the outlet, carcass weight, grade and fat score.

Cows

Cow price is varying between outlets, with some outlets stronger on price than others for specific grades of cows.

P and O grade cows form the majority of the weekly cow kills, but some outlets will pay a premium for well-fleshed R and U grading cows, while others may be able to pay more for well-fleshed O and P grade cows.

Some factories are also able to pay more money than other outlets for parlour cows which may have lower fat scores.

The graphs below show the average prices paid for P=2- grade cows and R=3= grade cows respectively by outlet in the week ending Sunday, August 25:

This week, U grade cows are being quoted at €5.00 with €5.10/kg and more available for U grade cows in cases. R grade cows are being quoted at €4.70-4.80/kg in general.

O grade cows are being quoted at approximately €4.50/kg, with €4.40/kg being quoted for P grade cows.

There remains plenty of variation in cow price both between processors and within grades.

Bulls

Under-24-month bulls are being quoted at €5.25-5.30/kg for U grade bulls with €5.15-5.20/kg being quoted for R grade bulls. O grade bulls are being quoted at €5.05/kg and P grade bulls are being quoted at €4.95-5.00/kg.

Under-16-month bulls are being quoted at €5.00-5.05/kg on the grid.