Christmas to keep DW cattle business strong for now

By FWi staff

DEMAND for deadweight cattle is expected to remain reasonably strong over the coming week as Christmas draws closer.

Deadweight prices have already climbed steadily over the past month, with some processors sourcing increased supplies as early as November.

“The demand for material now comes 3-4 weeks prior to Christmas, whereas in the past it came just a week or so before,” said one industry source.

As a result, deadweight prices have avoided following liveweight returns to their recent lows.

“The large processors have tried to support producers and level out the peaks and troughs seen in the livestock markets,” said Tim Bastable of Midland Meat Packers.

But deadweight prices are expected to fall after the festive season when demand is likely to drop off again.

“There is likely to be an oversupply of cattle in early January,” warned Mr Bastable.