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Meat & Poultry
Beef
14
The average price of cattle in the EU reached EUR 4,853/MT, down 1% m-o-m, due to demand destruction seen
in the EU market amid high beef prices. However, the price was up by 16% y-o-y in August, on the back of an
estimated decline in EU beef production. The declining cow herds in France and Germany have driven lower (y-o
-y) beef production in the EU. High input costs, particularly feed, have discouraged farmers from breeding cattle,
thus leading to tight supply.
In August, the average price of US cattle remained stable m-o-m and increased by 14.2% y-o-y, to USD
5,061/MT. Severe drought, in some US regions since 2021, has deteriorated pasture and forage conditions. This
has been pushing calves into the feedlots faster than the previous year, leading to an increase in the rate of feed
cattle slaughter at lower carcass weights. Strong domestic and record export sales helped support this high
slaughter level.
The average price of UK cattle fell by 1% m-o-m, to GBP 4,241/MT in August, as the cow slaughter increased
2.3% m-o-m during the same period. However, the price rose 8.5% y-o-y with increasing domestic demand for
barbecue cuts and strong global exports. According to market participants, there could be a steak shortage in the
remaining summer months as surging feed and energy prices have forced farmers to slaughter cattle at lower
carcass weights.
Cattle steer ddwt R3 mp EU - EUR/MT
Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22
3,000
3,400
3,800
4,200
4,600
5,000
5,400
MDC2 - Cattle steer ddwt R3 mp EU
Cattle steer ddwt US - USD/MT
Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22
2,500
3,000
3,500
4,000
4,500
5,000
5,500
ZK33 - Cattle steer ddwt US
Cattle steer ddwt O3 NIr UK - GBP/MT
Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22
3,350
3,550
3,750
3,950
4,150
4,350
4,550
4,750
4,950
MF05 - Cattle steer ddwt O3 NIr UK