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AHDB Cattle and Sheep Weekly


11 August 2014

EBLEX Cattle Weekly - 8 August 2014EBLEX Cattle Weekly - 8 August 2014


A more positive trading climate?

In week ended 2 August, the deadweight cattle trade edged up modestly compared with the previous week. At 326.7p/kg, the GB all prime average price increased by over a penny on the week. This is the first week this year that this indicator has moved up by anything more than a fraction. With dwindling cold store stocks, as the summer holiday demand for burgers continues, competition amongst processors appears to have been notably stronger. This potentially indicates a more positive trading environment may be developing.

Estimates suggest that in the latest week, fewer steers were forward and consequently R4L steer prices strengthened 3p on the week to average 343.9p/kg. At this price they have increased 6p/kg over the past fortnight. In contrast, with increased numbers forward, R4L heifers were back a penny on the week to average 335.4p/kg. Despite more young bulls coming forward, the overall average price increased 2p on the week to 305.9p/kg. Currently reports suggest that demand for those young bulls that are in specification and under-16 months of age is more robust.

Once again, the cull cow trade remained firm in the latest week as demand still appears to be ahead of supply. In week ended 2 August, the GB –O4L cow price increased a penny on the week to 243.9p/kg. Cows are reported to be finishing well due to better seasonal conditions, giving producers the opportunity to take advantage of some very firm prices for cows fitting specific processor requirements.

Strong Brazilian beef exports in the first half of the year

The widely anticipated expansion in Brazilian beef export volumes, evident last year, has continued in the first half of this year. Hitting their highest first half position since 2007, volumes were up 14% on the year to almost 600,000 tonnes. Further details can be found here.

Gap between farmgate and retail price widens

With farmgate beef prices edging down a fraction month on month and retail prices slightly higher, the producer share of the retail price fell one percentage point during July, to 46%. The latest figure means that the producer share of the final retail price is still eight percentage points lower than it was in January and 13 points back on its position in July last year.

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