Imported US beef market drifts lower
19 May 2016
Imported beef prices to the US continued to drift lower this week, with overseas packers reportedly pushing back on lower bids from US end users, creating instability in the market.
The Steiner Consulting Group’s weekly report for MLA indicates that the seasonal increase in New Zealand cow slaughter and a decline in domestic lean beef prices are placing downward pressure on imported beef prices at the moment.
The imported 90CL cow beef indicator fell 5US¢ this week, to 192.5US¢/lb CIF (down 10.5A¢, to 583.8A¢/kg CIF).
The Steiner Consulting Group suggests that there are indications imported beef prices may find a base earlier than usual this year. One factor that reportedly should support prices into the US summer and fall is the supply gap that will become more apparent in the coming months.
In the first couple of months of year, the reduced import volumes were buffered by the ample supplies of imported beef in cold stores. However, Australian and New Zealand beef imports continue to be lower than year-ago levels, and US cow slaughter remains relatively low historically.
