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Meat & Poultry
Beef
12
The average price of EU cattle reached EUR 4,075/MT, up 2.5% m-o-m and 15.7% y-o-y in May as EU beef
production in January and February declined by 9.5% y-o-y. Also, the number of EU cattle available for meat
production is forecast to drop by 2.4% y-o-y in H1 2021, indicating beef supply tightness in the market. This was
due to structural adjustments in the beef sector amid COVID-19 measures in many EU countries, and low demand
from the foodservice sector.
Severe drought in the US has impacted pastures' growth and increased the reliance on hay usage, resulting in high
hay prices. Therefore, poor pasture conditions, together with higher hay and feed costs, led to an increase in the
average price of US cattle by 7.6% y-o-y, to reach USD 4,191/MT in May. However, the price dropped 1.8% m-om
with weak demand from the beef processors driven by interruptions in beef packing capacity due to labour
disruption, extreme weather in February and scheduled plant maintenance events.
Cattle steer ddwt US - USD/MT
Jan 19 May 19 Sep 19 Jan 20 May 20 Sep 20 Jan 21 May 21
2,500
3,000
3,500
4,000
4,500
5,000
ZK33 - Cattle steer ddwt US
The average price of UK cattle increased by 14.5% y-o-y to GBP 3,774/MT in May. Tightness in cattle supplies
remains the underlying driver for high UK beef prices. In addition, the May 2021 ease in restaurant dining
restrictions has driven demand from the foodservice sector, keeping UK beef prices firm. A seasonal rise in
demand for steak meat cuts, such as chuck, brisket, ribs and mince (for burgers), particularly for summer barbecues,
supported UK beef prices.
Cattle steer ddwt R3 mp EU - EUR/MT
Jan 19 May 19 Sep 19 Jan 20 May 20 Sep 20 Jan 21 May 21
3,400
3,500
3,600
3,700
3,800
3,900
4,000
4,100
4,200
MDC2 - Cattle steer ddwt R3 mp EU
Cattle steer ddwt O3 NIr UK - GBP/MT
Jan 19 May 19 Sep 19 Jan 20 May 20 Sep 20 Jan 21 May 21
2,750
2,950
3,150
3,350
3,550
3,750
3,950
MF05 - Cattle steer ddwt O3 NIr UK