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More drops in US imported beef market
12 November 2015
It remains difficult for Australian exporters to move beef in the US market, as a lack of interest from US buyers with large inventories forced the market lower again, after a small recovery last week. Prices quoted in this week’s report for MLA from the Steiner Consulting Group were lower for the majority of categories. The imported 90CL cow beef indicator dropped 5.5US¢, to 189.5US¢/lb CIF (down 11.1A¢, to 592.6A¢/kg CIF).
The market is likely to keep moving lower until end users decide it has reached a price point they are comfortable with purchasing large volumes again. There will also be larger volumes of beef to purchase out of New Zealand (NZ) for the beginning of 2016, when more exporters have quota available again. The NZ seasonal slaughter increase has started, although numbers are still low relative to Australia.
In a separate report, Urner Barry’s Beef Report, which used to be known as the Yellow Sheet, has started reporting deferred prices for lean beef products to be delivered in 2016. These are slightly lower (around 1–2%) than current spot prices.
