Deadweight cattle prices go from strength to strength

Deadweight cattle prices rose again in the week ending 24 April, the GB all-prime average gaining a further 2.5p to reach 406.2p/kg. This is a far cry from a year ago, when the market was struggling to balance the carcase, as panicking consumers filled their boots (and freezers) with mince. A surplus of top cuts built up in cold storage, hurting carcase values.

Since then the market has gone from strength to strength with even more volume than usual moving through retail channels. This trend is set to reverse this year however, as foodservice outlets reopen, and some demand shifts back out of the home. The foodservice market is fertile territory for imported beef, and so demand for British product may start to wane.

However, the domestic supply side is forecast to remain tight for some time to come; a topic we revisit as we review the beef market outlook published in January. Tighter supplies and higher prices may also help explain why cattle appear to be coming forward slightly younger than is typical for the time of year, a trend seen for some time. GB registrations of cattle likely destined directly for beef production were slightly lower in 2019 compared with 2018.

Estimated prime slaughter during the week totalled 32,900 head, 600 more than the week before but 400 fewer than the same week last year.

GB deadweight prime cattle price movements (w/e 24 April):

• All prime: 406.2p/kg up 2.5p
• Steers (overall): 406.4p/kg up 2.5p
• Steers (R4L): 415.9p/kg up 2.1p
• Heifers (overall): 406.6p/kg up 2.0p
• Young bulls (overall): 401.1p/kg up 5.4p

Cow prices also rose again, with the overall GB price up another 3.1p to 279.5p/kg. Those meeting the –O4L spec however lost a fraction (0.3p) on the week to settle at 295.3p/kg. Numbers slaughtered were stable compared with last week, at 9,800 head.

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