OTM cattle grading O at 218 cent
The main impact has been on prices for the poorer grading animals, with a widening in the price gap between R and O grade animals to 15 cents/kg (5p/lb), which is costing sellers of the O grade animals up to €50 per head.
Most factories have held the price for R graders at 241 cents/kg (86p/lb) with the exception of some processors in the midlands, where the price has weakened a further 3 cents/kg (1p/lb) this week.
Prices offered for O grade animals vary from 230 cents/kg (82p/lb) down to 224 cents/kg (80p/lb).
The limited number of factories paying the higher prices filled up very quickly, and it was getting more difficult after Monday to get better than 227 cents/kg (81p/lb).
The price penalty of 6 cents/kg (2p/lb) for animals over 30 months is general across the country, and some finishers who paid high prices for stores are now getting a disastrous 218 cents/kg (78p/lb) for Over Thirty Months animals grading O.
The intake at the factories dipped slightly to 38,900 head last week, which is normal for the week of the National Ploughing Championship. The intake of steers was 21,693 head.
The steer supply is running around 3,000 head per week lower than last year, which normally should benefit the trade, but the British and European markets are so lacklustre this season that there is no real pressure on the factories to get more cattle, and it remains very much a buyer's market.
Demand for steak has dropped in Britain. Markets in France, Italy, Germany and Netherlands are all reported to be quiet.
Prices for cull cows have steadied at the factories, where the base rate is ranging from 196 back to 185 cents/kg (70p to 66p/lb). There is good demand for the quality cull cows capable of grading R; these are making over 224 cents/kg (80p/lb).
