US imported beef prices lose ground

US imported beef prices moved lower last week as US end users focused their attention towards moving extra product that emerged at the end of June and early July.

Furthermore, US end users remain reluctant to offer higher bids, as the seasonal increase in US cow meat supplies will likely weigh on lean grinding beef prices. Declining retail demand - post the Labor Day holiday in September - should also start to pressure grinding beef values lower.

The imported 90CL beef indicator edged 2US¢ lower to US192.5¢/lb CIF (down AUD6¢ at AUD572.79¢/kg CIF).

Supplies out of New Zealand have begun to tighten and Australian supplies to the US remain relatively limited. Strong demand from Asian markets, in particular China, continues to absorb the additional flow of product onto the market.

Market highlights for the week ending 27th July

• US non-fed cattle slaughter for the week ending July 28 was estimated at 129,000 head, up 10.2% compared to a year ago.
• Fed cattle slaughter last week was estimated at 511,000 head, just 0.2% higher than a year ago. In the last two weeks, slaughter has been only 0.9% higher than last year.
• The combined supply of beef, pork, chicken and turkey in cold storage at the end of June was 2.460 million pounds, 4.9% higher than a year ago and 9.3% higher than the five-year average.

View the Steiner Consulting US imported beef market weekly update