Tighter supplies of finished beef have resulted in increased prices across the board, with those much needed premiums also being passed onto the store cattle producers.

Such has been the much improved trade for prime beef that values have been above the five-year average for about 12 months now, and continental and native beef store producers are also now reaping the benefits

According to a report from AHDB, native breeds have fared slightly better than continental store cattle since the autumn, perhaps as a result of various supermarket breed schemes, where demand has been concentrated since the end of March, 2020.

Those selling store cattle have probably been less directly affected by rising prices for bought-in feed too, due to their greater reliance on forage. Their customers, the finishers, will however, have had to incorporate the higher cost of feed into their cattle purchasing decisions.

Medium-term demand for cattle also plays a part in those decisions, especially for processors looking to secure numbers ahead of time. Although the reopening of foodservice has been rather fitful, increasing demand from this sector may eventually lead to lower demand from supermarkets, and so lower demand for British cattle.

On a more positive note, reports suggest that numbers of cattle available for slaughter are tightening again. The number coming out of yards is apparently falling, while those coming off grass aren’t quite ready yet.

This may support finished values, and therefore store cattle prices for the time being. Indeed, the recent uptick in prices for two-year-old stores, those closest to slaughter age, may be an indication of the short-term direction for finished prices.