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US imported beef prices heading south
27 July 2017
US imported beef prices continued to move lower this week, with increased activity from overseas packers looking to secure orders from US end users and willing to discount prices as a result.
The imported 90CL beef indicator fell 7US¢ from week-ago levels, to 212.0.US¢/lb CIF (down 21A¢, to 590.34A¢/kg CIF).
Spot supplies for lean grinding beef remain limited, however the market sentiment is that overall grinding beef availability is increasing, particularly for those looking to secure product for delivery in September or October.
Steiner Consulting Group report that the impact of higher year-on-year cattle slaughter out of Australia and New Zealand, combined with a softening in demand from Asian markets is improving the prospect of lean grinding beef availability post summer.
US Outlook
October US fed cattle futures declined 5% during the week, as the prospect of larger than expected US cattle supplies affected US end user demand. The number of cattle entering US feedlots continued to increase throughout June, up 16% year-on-year.
Click here for more details on the US herd expansion
Cold Storage Update
The latest USDA cold storage report indicates that, as at 30 June 2017, total frozen red meat inventories in the US were 7% lower year-on-year. Frozen beef inventories were back 10% year-on-year, at approximately 211,000 tonnes.
Click here to view Steiner Consulting US imported beef market weekly update
