Limited offerings on US imported beef market

As has been the case over the last few months, trading activity on the US imported beef market remained fairly light this week, on the back of lower domestic beef prices and reduced offerings from overseas suppliers.

According to the Steiner Consulting Group’s weekly report commissioned by MLA, some imported beef prices increased slightly this week – although mostly due to tight supplies, rather than stronger demand.

The imported 90CL beef indicator lifted 3.5US¢ from week-ago levels, to 188.5US¢/lb CIF (up 5.2A¢, to 542.7A¢/kg CIF). Compared to the same time last year, however, the indicator is down 13US¢ (71.4A¢).

An update from the US Bureau of Labor Statistics indicates that the US foodservice sector has had weaker sales and foot-traffic results over the last few months. Steiner Consulting believe this is likely to have contributed to lower demand for imported grinding beef, as the majority of imported beef is utilised in US foodservice.

Australian and New Zealand beef imports remain limited and the reports suggests that the availability of South American beef is also expected to remain limited for the remainder of 2016. Now more than half way through the month, Australian beef exports to the US (as at 17 October) have reached 5,869 tonnes swt, and there is no doubt shipments will be considerably lower than October last year, at 22,072 tonnes swt (Department of Agriculture and Water Resources).