Despite a decrease on the number of cattle put forward, the deadweight prime cattle price continued to decline last week as the supply of cattle outstrips demand.

Standing at 365.3p/kg, the GB all prime indicator was down 2p on the week ending 8 February with prices at their lowest level for a year according to EBLEX.

All three categories of prime cattle showed decline with the young bull average down the most at 327.9 p/kg, down 4p on the week.  Young bull values are now at their lowest point since September 2012.

Whilst deadweight cattle prices are still showing some decline, prime cattle values at GB auction marts showed some uplift in week ended 12 February. At 188.7p/kg, the all prime indicator was up a penny on the week, despite 10% more cattle being sold.

Cull cow prices in the deadweight market are showing some relative stability, falling at a slower rate than the prime trade. In week ended 8 February the all cow average was less than half a penny lower on the week at 219.7p/kg.

Long term, cattle supplies are expected to tighten further with current estimates indicating that the supply of cattle in January was some 4% ahead of year earlier levels.

The latest AHDB/EBLEX forecasts indicate that the fundamentally tight supply situation will reassert itself in the longer term and the short term increase in cattle is expected as a result of more male cattle aged over two years and between one and two years of age being on the ground, according to the latest British Cattle Movement Service (BCMS) figures.