United States-Australian beef imports.

UNITED STATES IMPORTS.

A$ bearing down on US market

17/04/2009

The US imported beef market remained firm this week as offerings from Australia and New Zealand tightened and US buyers continued to avoid out front commitments. The appreciation of the A$ this week impacted the imported 90CL cow price in A$ terms, declining 5.2¢ to 336.3A¢/kg FAS. In US$ terms, it gained 1.5¢, to 122.5US¢/lb CIF.

Reports indicate that both US and Australian packers are currently cutting back kill days to minimise losses. With beef supplies looking to tighten, and the biggest beef consumption weekend of the year (Memorial Day weekend) fast approaching, this may place a bullish sentiment in the market place over coming weeks.

US based Steiner Consulting Group has recently released its quarterly forecasts. It predicts that the imported 90CL cow beef price will continue to be lower over the US summer months on both last year and the five year average. Prices in May and June are expected to average 134US¢/lb and 137US¢/lb, respectively – down 20% and 23% on last year (this week, it averaged 16% below year ago levels) due to the US$ being significantly higher than a year ago, imported supplies being more plentiful this year and high US dairy cow slaughter.