As the round of autumn store cattle sales gets into full swing, store cattle producers are seeing average prices £30 to £50 per head lower than last year, according to the latest QMS analysis.
The slide in store prices has occurred despite auction throughputs in recent weeks being lower than last year. This is particularly relevant for younger weaned calves where the toll of a difficult spring, which saw young calf mortality much higher than last year, is being reflected in sale volume.
"Cattle finishers are appearing a little more cautious over their future," said Stuart Ashworth, QMS Director of Economic Services.
"This is not surprising given the increase in feed grain and protein prices, which are currently 25-30 per cent higher than last year, and concerns over winter forage and bedding stocks.
"However, equally causing uncertainty is the ambiguity over the state of the Brexit discussions," he added.
The political uncertainty translates into a lack of clarity as to the terms of trade both for importing and exporting beef and indeed any food product.
"The questions that need to be resolved are many and varied, including not only the level of tariffs and access both for exports and imports, but also the logistics and administration that will have to be performed before trade can take place," said Mr Ashworth.
"The answers to these questions will almost certainly add cost to the supply chain and make trade more difficult, but to different degrees."
The uncertainty over market access makes the risk of price volatility much higher and adds more variables for consideration when forward planning a business.
Market round-up
Messrs Craig Wilson Ltd sold 178 store heifers at Ayr on Thursday to a top of £1150 per head and 224.3p per kg to average £831.99 or 194.8p (+0.9p on the week), while 289 store, beef-bred bullocks peaked at £1330 and 230.4p to level at £902.86 or 202.6p (-1p). Thirty-two store, B&W bullocks sold to £875 and 162p to average £495.94 or 128.2p (-11.6p).
Harrison & Hetherington Ltd sold 46 store heifers in St Boswells on Thursday to a top of 215.8p and an average of 199.6p, while 76 store bullocks also peaked at 215.8p, but levelled at 197.6p.
C&D Auction Marts Ltd sold 4047 prime lambs in Longtown on Thursday to a top of £100 per head and 230p per kg to average 171p (-4.7p on the week).
A much larger entry of 6718 cast sheep saw heavy ewes sell to £151 for Texels and average £68.28 (+£2.94), while light/export-type ewes peaked at £78 for Cheviots and levelled at £34.94 (+£5.34). Rams sold to £126 for a Texel and averaged £74.56.
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