By FWi Staff
THE latest green Pound devaluation could have implications for the operation of beef intervention, announced the Meat and Livestock Commission this week.
Safety net intervention is triggered when national prices fall below 60% of the intervention price. Latest prices for Great Britain stand at 66.76% of the intervention price using the green rate in force during the week.
R3 and R4 steer prices were 152.8p and 153.5p/kg deadweight respectively. Assuming there is no change in price, a further green Pound devaluation could put UK prices at 64.7% of the intervention price.
The MLC estimates that deadweight prices for R3 and R4 grade steers would have to fall to around 142p/kg in order to take prices below the 60% safety net trigger level.
At livestock markets in England and Wales this week cattle appeared to have stabilised somewhat. Light steers fell 1.95p to 72.68p/kg while other steers inched up marginally. Total steers finished slightly higher at 79.73p/kg.
Light heifers made a strong recovery climbing 6.45p to 76.56p/kg while medium heifers fell a further 0.29p to 77.93p/kg. Heavy samples nudged up to 79.06p/kg.
Bulls had a good day at markets on Monday with light bulls climbing 4.55p to 79.50p/kg. Medium bulls did best rising 4.91p to 82.06p/kg while heavy bulls crept up 1.86p to 81.21p/kg.
Farmers and auctioneers alike hope that we have now seen a bottoming in the market. The recent price increases could well signal the long awaited start of a market recovery