- - news, features and articles for the meat processing industry

AHDB Cattle and Sheep Weekly

07 September 2015

AHDB Cattle and Sheep Weekly - 7 September 2015AHDB Cattle and Sheep Weekly - 7 September 2015

Welcome sharp increase in the liveweight lamb trade

Following the increases seen towards the end of last week there have been larger gains in the liveweight lamb trade in the recent days.

In week ended 2 September the GB SQQ was up by 11p on the week at 155.0p/kg. This has reduced the difference compared to last year to just 2p. The sharpest rises were seen towards the end of the week, with the SQQ on Wednesday 2 September up 15p on the week at 159.8p/kg to be 8p above levels seen in 2014.

This is the first time since April that the SQQ has been above last year’s level.

These increases are likely to be a result of a number of factors driving some increase in demand. These include a recent strengthening of the euro against the pound, which will be helping the export situation. The upcoming Muslim festival of Eid-al-Adha (September 23) may also just be starting to have a positive influence on demand for lamb. However, the festival is three weeks away and so its effect on prices is likely to increase in the coming days.

Supplies have also been slightly tighter in the shorter bank holiday week – throughputs at GB auction markets fell by one per cent on the week. The percentage of lambs falling within the SQQ weight band was at 76 per cent.

Despite this rise in the liveweight trade, the deadweight trade has continued to fall, with the dw SQQ in the week ended 29 August down 4p on the week at 331.3p/kg. This leaves prices 43p below levels seen in 2014.

Another steady week for the prime cattle trade

Demonstrating a modest level of positivity ahead of the bank holiday weekend, in week ended 29 August the prime cattle trade steadied on the week earlier.

While recovery in farmgate prices is still tentative, the balance in the trade seems to be just tipping into producers' favour. Reports suggest that processors have been more active in the market, trying to secure enough cattle to keep a longer pipeline filled. Despite the number of cattle coming forward being up 200 head on the week, the GB prime cattle average price was almost unchanged at 344.9p/kg. Steers meeting R4L classification were up 2p on the week earlier at 357.9p/kg, while heifers of the same spec moved up a penny to 355.5p/kg. Consequently, against the backdrop of tighter supplies ahead, particularly as cattle coming off grass could be slower to finish than previously expected, any small lift in demand could well stimulate greater competition in the market as the autumn progresses.

Overall the cow trade edged back on the week earlier despite estimates suggesting that the number of cows coming forward were at their lowest weekly level for more than six weeks. However, -O4L cows moved up 3p to 232.9p/kg as supplies of well fleshed cows fell behind demand, possibly a reflection of the holiday season on the continent drawing to a close.

DOWNLOAD REPORT:- Download this report here

Share This

Related Reports

Reports By Country

Reports By Category

Our Sponsors