Deadweight beef prices boosted by Christmas demand

Processors’ demand for beef is stepping up ahead of the Christmas period, boosting deadweight prices during the past couple of weeks.

With supplies remaining tight, processors’ attempts to secure beef to meet their retail contracts meant average R4 L steer prices increased by 4.9p/kg in the week to 17 November, to 362.2p/kg.

“The effect of the seasonal demand still has the potential to add further to the tight supply and demand balance,” said a report by EBLEX. “Latest reports suggest processors have been struggling to source cattle in adequate numbers.”

Average heifer prices increased by 3.5p/kg on the week to 348.7p/kg, with young bulls up by 4p to 335.6p/kg. A greater supply of cows meant prices remained virtually unchanged, at an average of 231p/kg.

Liveweight values also continued their upward trend in the week to 20 November, despite an 8% increase in auction throughputs. The overall prime average increased by 1.85p/kg to 193p/kg, with steers averaging 194.09p/kg, heifers 198.17p and young bulls 183.86p. “As with the deadweight trade, the overriding tight supply situation and the intensifying of procurement for the Christmas period may add to the tight supply-and-demand balance,” said EBLEX.

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