OPINION: "How long can beef prices keep moving up?"

Can the upward trend in beef prices continue? Both industry analysts and auctioneers seem to be of the opinion that it can, or at least maintain current levels.

At the moment, consumers seem to be prepared to pay a premium for high-quality British beef, but surely at some point it must reach a limit.

READ NOW: Fierce competition for prime beef sees prices 'soar' despite reduction in UK cattle numbers

Strong demand coupled with tight supply is driving the high finished prices. This is feeding back down the chain with store cattle trade reaching unprecedented levels, right back down to stirk and calf prices which are also seeing big rises. Cull cow prices are also hitting record levels as the demand for processing meat increases.

READ NOW: Breeding British Blue bulls for AI provides key income stream for Suffolk farm

This confidence also seems to be continuing into the pedigree trade with record averages set at this week's Stirling Bull Sales. Many bulls went to commercial buyers, which is perhaps a sign that there is a bit more positivity in the suckler section which has been in decline for so long.

REGISTER NOW: Join our FREE webinar on February 26: 'How to navigate the IHT fallout and plan your farm's succession'

While all this sounds very positive, it is not all about farmers making a big profit. Input costs continue to rise and for many the challenge is refilling the sheds once cattle have been sold, which given current store cattle prices, can leave a hefty hole in the bank balance.

For all the latest market prices visit our market prices hub at farmersguardian.com/market-prices-hub

Deadweight Steers Trend Chart

Visit our Market Prices Hub at https://www.farmersguardian.com/market-prices-hub