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Cheaper market for imported beef in the US this week
27 August 2015
All of the beef prices quoted in this week’s report from the Steiner Consulting Group were markedly lower than last week, suggesting importers have responded to the downward movements in the futures market for fed cattle. The futures market appears to be dropping in response to the volatility in global stock markets, and uncertainty about the strength of economic growth into next year.
The implied price for 90CL beef produced in the US, based on the lower cattle futures, could be as much as low as 250US¢/lb later this year, which is still slightly higher than current imported 90CL beef prices. This week’s imported 90CL cow beef indicator was 237US¢/lb CIF, 5.5US¢ lower than last week (up 0.4A¢, to 728.4A¢/kg CIF).
The Steiner report suggests that Australian beef shipments to the US could drop sharply once 85% of the quota has been reached, from next week. This will depend on the strength of demand, and how willing importers are to continue purchasing large volumes of Australian beef with an out-of-quota tariff.
