Reduced supplies continue to support US imported beef market

Limited overseas offerings continue to support prices for imported beef in the US this week, with imported 90CL beef still trading at a premium to domestic beef in the US wholesale market.

According to the survey of importers conducted by the Steiner Consulting Group in a weekly report for MLA, the imported 90CL beef indicator lifted 0.5US¢ on last week’s levels,  to 211US¢/lb CIF (up 2.5A¢, to 621.1A¢/kg CIF).

Along with reduced imports from Australia due to tighter cattle availability, and the seasonal contraction of supplies from New Zealand, volumes of imported grinding beef to the US from other markets are reportedly lower as well. According to the Steiner Consulting Group, the latest data suggests that Australian beef shipments to the US for July so far are down around 56% year-on-year.

New Zealand beef production will start to increase in October, in line with their seasonal production cycle, which will mean more beef going to the US through November and December. Supplies from Uruguay are reportedly slightly higher, although volumes are limited by quota.

Domestic lean beef prices in the US were steady week-on-week, and market participants are reportedly opting to stay short bought, with the potential for a drop in domestic grinding beef prices during the US autumn and higher asking prices from overseas.