Northern European beef and cattle market remains surpressed

The Northern European beef market remains under significant pressure. Sentiment remains negative, as consumers are still not really buying. As a result, prices have declined in almost all Northern European countries. There is, however, one exception.The European beef market is still very weak. Sales of luxury cuts such as steaks are not performing as well as market participants had hoped. This is due to foodservice demand still being lower than expected. The weather is often cited as a factor. This spring has been sunny and dry, but at the same time it has been cold. As a result, fewer people choose to go out and have dinner on a terrace in the evening. This weather pattern especially hurts Northern European beef sales. As a result, spending in the south has been somewhat better, and the market there has been more stable.Meanwhile, market participants are also speculating on the effects of the crisis in Hormuz. Traders believe that consumers are being very careful with their money, as the gasoline bill is eating into the extra income normally spent on foodservice. They also believe that people seem to be saving more. These narratives have market effects whether they turn out to be true or not. Even if this reasoning proves unsound, buyers tend to be more cautious because of these rumours, as their expectations of recovery have been lowered.Northern European beef prices under pressureThe weak sentiment in the market is becoming more and more visible in the data. Northern European beef prices are still mostly stable, but wholesale prices in most Northern European countries have declined slightly. Prices for O-quality cows in Germany have fallen by 1.9% from their highest point to €605.56 per 100 kilos in week 15. In Denmark, prices peaked around week 11 at €609.10 per 100 kilos. By week 16, prices for O-grade cows were 2.6% lower at €593.21. One exception is Polish beef, which has seen an increase on average.When looking at higher-quality beef, prices have been falling more consistently since the beginning of the year. Since week 6, meat from German young bulls of R class has declined by 6.2% to €494.09 per 100 kilos. Meanwhile, Irish prices have stabilised after a rather large drop. Prices for Irish steers of R quality have fallen from €710.14 to €667.72 per 100 kilos. In relative terms, prices for this category have decreased by 6%. Poland, once again, is the exception, with prices generally increasing.Northern European cattle prices declineHowever, there are signs that the situation is changing. In Northern Europe, cattle prices are under pressure. In the Netherlands, this pressure is not significant. De Vee & Logistiek gaf ondertussen een stabiele notering op. De opgegeven prijswaarneming van de brancheorganisatie bleef gelijk, op een niveau van €5.68 per kilo. De ruime markt heeft wel duidelijk effect op de veemarkten. However, cattle market quotations in Leeuwarden have continued to fall. As a result, in week 17 there was only a 2-cent difference between the cattle market and the Dutch Vee & Logistiek quotation.However, in Germany the situation is significantly different. O-class cows remained stable, but R-quality young bulls saw a significant drop on the VEZG quotation of €0.20 per kilo. Since the start of March, prices have fallen significantly from around €7 per kilo to €6.40. Prices in Denmark are also declining. This week, prices fell by 0.3 crowns (€0.04) across all categories. While this decrease is still relatively small, the market trend is negative. Earlier this year, Denmark did not see the upward corrections observed in other markets, but prices have been decreasing by about 4 cents per week.