While the beef trade remains dull, relatively strong demand for butcher-type heifers has resulted in a growing price differential between U3 heifers and steers, when compared with prices paid earlier this year.

Based on official price reports published by the Livestock and Meat Commission (LMC), U3 heifers averaged 338.6p/kg last week.

Steers averaged 331.2p/kg, leaving a difference of 7.4p/kg. In late July the difference was also over 7p/kg, at the end of June the price gap was 6.4p/kg, in the last week of May it was 5.9p/kg, and if we go back to the end of February and the end of March, it was 3.1p/kg and 5.2p/kg respectively.

Current trade

Despite current prices being at their lowest level for over three years, processors have applied another cut to base prices this week, taking 2p/kg off as supplies of grass-finished cattle start to increase. This puts U3 animals on a starting price of 322p/kg to 324p/kg.

However, 328p/kg to 330p/kg is still being paid for steers, with more on offer for larger finishers.

There is more room to negotiate on butcher-type heifers, and those with a regular supply have reported 340p/kg being paid at the top end of the market.

U3 steers averaged 354.1p/kg in late August 2018, with heifers on 361.2p/kg. This means a 350kg heifer carcase is worth £79 less when compared with the same period last year.

Supplies

Throughput of prime cattle has recovered during August, which has stalled any upward price movement.

Last week, the prime steer kill increased by 638 head to 3,035, leaving the overall kill at 8,285, the largest weekly kill since early June.

For the year to date, the total cattle kill is running 2,300 head behind 2018 figures. The reduction is mainly due to less cows being killed this year.

The heifer kill is actually up significantly, with 85,487 slaughtered to date, compared with 81,945 over the same period in 2018.

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