Dropping cow prices, steady bulls in the market
Cattle Market Update: Prices for Slaughter Cows Fall, While Young Bulls Remain Stable
In the latest report by VEZG, prices for slaughter cows have taken another dip, falling by 10 cents per kilogram live weight (LW) on August 11. The price for slaughter cows now stands at 6.05 euros/kg LW for animals of class O3 and 6.1 euros/kg LW for R3 cows (each at 310 kg LW).
Despite this decrease, prices for cattle remain high. For young bulls, the recommended price by VEZG remains unchanged at 6.8 euros/kg LW, while prices for O3 and U3 bulls remain at 6.62 euros/kg LW and 6.85 euros/kg LW, respectively. Farmers in class O3 receive 6.5 euros/kg LW for their young bulls, each at 300 kg LW.
The weak evaluation of slaughter cows is attributed to weak meat sales, as reported by VEZG. Market observers, including those from the agricultural chambers in regions like Schleswig-Holstein, North Rhine-Westphalia, Lower Saxony, and Rhineland-Palatinate, as well as reports by Fresh Food Services, cite a tight supply of slaughter cattle and a stable, high demand that keeps prices elevated.
Last week, some items were not sufficiently available at the wholesale market despite moderate demand, as reported by market observers. Slaughterhouses are putting pressure on prices and reducing slaughterings, contributing to the insufficient supply. Market observers do not expect an increase in stocks of slaughter cattle in the near future.
The current market situation for cattle is described by VEZG as one where prices for young bulls and higher-quality slaughter cattle can stabilize, while slaughter cows are evaluated weaker. Prices had fallen to a very high level in the last two weeks due to slow meat sales and high beef prices affecting demand.
However, market observers express expectations for a gradual increase in demand after the end of the holidays in most federal states. This optimism is based on the belief that the tight supply of slaughter cattle and the stable, high demand will continue, leading to limited growth in cattle stocks and a stable to sideways market development in the near future.
The price for young bulls has been stable since it peaked at 7 euros/kg LW on July 21. This stability, combined with the insufficient supply of slaughter cattle, continues to support prices in the current market.
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