US imported beef prices hold steady

US imported beef prices edged higher this week, as a result of limited spot availability and higher asking prices from overseas packers.

The imported 90CL beef indicator lifted 1US¢ from week-ago levels, to 209.5US¢/lb CIF (up 9A¢, to 589.01A¢/kg CIF).

Overseas processors were unwilling to accept lower bids being offered by US end users, as higher bids were available from other markets, specifically Asia. Steiner Consulting Group report that Asian markets are paying a premium for lean grinding beef over US importers, which is somewhat reflected by a sharp decline in US beef imports during September compared with the month prior.

Spot availability out of New Zealand remains seasonally limited, however the market sentiment is that more product will become available in the coming weeks, for delivery in November and December.

US demand

Steiner Consulting Group report that US export demand remains extremely strong, supported by rising levels of production – the week ending 30^th September was the largest US fed cattle slaughter week of the year to date, at 528,000 head.

Furthermore, US domestic demand continues to be robust, in particular for lean and extra lean grinding beef and there is an expectation that retailers will increasingly feature beef in the coming months.

Click here to view Steiner Consulting US imported beef market weekly update