Sentiment on the European market remains negative

Across Europe, sentiment in the beef market is rather negative. In Northern Europe, this is partly explained by the normal seasonal pattern, but in Southern Europe prices are also moving lower rather than rising.In Germany, the summer holiday effect is now also apparent. According to VEZG, prices for O-quality cattle fell by 10 cents to €5.65. This means the gap between the Netherlands and Germany remains in place. Because the Netherlands has had a clearly more ample supply throughout the year, the price difference of 37 cents remains intact. In relative terms, the German cattle price is therefore 7% higher than the Dutch price.Dutch prices go down After last week’s decline, Dutch cattle prices have stabilised again across all categories. Vee & Logistiek remained stable, keeping the price of sausage cows at €3.60. O-quality cattle are currently trading at €5.28 per kilo, while U-quality cattle are currently quoted at €6.55.The rapid stabilisation after the ten-cent decline shows that market sentiment is negative, but that the very sharp drops seen earlier this year are over. In week 24, we saw prices pause briefly after two declines. This time, prices moved down by just one step. While some pressure on prices is normal at this time of year due to lower demand during the summer holiday period, this is separate from the reductions earlier this year that were caused by the substantial supply.Irish prices up Until recently, Irish cattle prices had been falling considerably as a result of a weak market. The UK market has been importing more beef from South America, which has significantly reduced demand for Irish beef. Demand on the European continent has also been lukewarm at best, leaving the Irish market with little opportunity to compensate for the decline.According to market participants, this situation has now changed. Prices for Irish cattle are rising across all categories, mainly due to a considerably tight supply of cattle. According to the kill count for the week ending 15 July, 27,150 cattle were slaughtered that week. Week on week, slaughter numbers fell by 9.4%. This kind of decline is unusual for this time of year. Last year, for example, the slaughter rate remained relatively stable, with a change of around -1%. For the first time since May, the cattle slaughter rate has fallen below the 2025 level. Year on year, the cattle slaughter rate is down 5.8%.Southern European sentiment is also negative Meanwhile, Southern European cattle markets remain somewhere between negative and stable. Normally, during the summer, the shift in demand from Northern Europe tends to benefit Southern European markets. However, this pattern is currently not visible in the market.This summer has not been kind to the beef market in Southern Europe. Extreme heat has weakened what remained of foodservice demand, as consumers are less inclined to visit terraces when temperatures are around or above 40 degrees Celsius. Despite being on the brink of the summer holiday period, prices in Italy have stagnated over the past month across all major cattle markets.In Spain, meanwhile, prices have stabilised after a period of consistent price pressure. Over the past few weeks, prices have declined almost uniformly, with negative movements of around 4 cents per kilo quoted last week and cumulative decreases of around 20 cents across all categories, according to the Spanish Ministry of Agriculture. Finally, in France, cattle prices are stable across all categories, but prices for almost all cuts are currently moving lower. Of the 27 cuts quoted by the Rungis market, 18 are down, 3 are stable and 6 are up.