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Cattle prices moderate, but remain high
Wednesday, 19 May 2021
By Bethan Wilkins
Deadweight cattle prices eased a little in the week ended 15 May, but remain at unusually high levels as the market for beef continues to be firm.
The GB all-prime average measure lost over 3p to settle at 402.7p/kg. This is now the second consecutive week of decline for the series. Prices for all prime cattle types remained significantly above the 5-year average, but all declined week-on-week overall. Prices for R4L carcases moved as follows:
- GB R4L Steers: -2.3p to 414.4p/kg
- GB R4L Heifers: -2.4p to 413.7p/kg
Prices for young bulls in Scotland bucked the overall trend and recorded an increase of nearly 3p on the week to average 414.4p/kg overall. In contrast, the England and Wales average price fell by nearly 3p to 392.4p/kg.
Although favourable for producers, such high prices make profitability further along the supply chain a challenge. This may limit how long such levels can be maintained, even though supplies of cattle on the ground remain tight.
Cow prices were more sheltered from the moderation in prices, with the overall GB average down just under a penny on the week at 278.5p/kg. The –O4L price actually rose by 0.8p to 296.9p/kg. Market reports suggest that processors are trying to draw out cow numbers to support overall beef supply as prime cattle numbers remain tight.
Estimated prime cattle slaughter during the week ended 15 May totalled 33,500 head. This is 10% higher than the previous week, largely due to the Bank Holiday, and does not signal a “real” increase in the number of cattle coming forward. Cow slaughter was estimated at 9,800 head in the same week, also 14% higher than the week before.
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