Market trend points to price cut

THE beef trade has come under increasing pressure, leaving a lot of unease among cattle farmers over the direction which prices are taking in mid-July — and the danger of over-reaction making the situation even worse.

Demand for beef has weakened on export markets. A number of the factories have eased back on throughput. At the same time, the supply of cattle has increased — and it continues to increase — inevitably resulting in pressure on cattle prices.

Cattle have performed well over the past six weeks, and farmers are very anxious to sell as quickly as possible, with the grass supply tight on many farms, and anxiety to get out while the price holds.