Recent gains in US imported beef market erased
12 May 2016
The US imported beef market took a tumble this week, with almost all categories in the Steiner Consulting Group’s weekly report for MLA recording declines in quotes supplied by importers. Buyers appear to have returned to a more stable stock position after strong buying in the past three weeks, while New Zealand supplies of lean beef were also reported to be more readily available.
The imported 90CL cow beef indicator dropped 6.5US¢ this week, to 197.5US¢/lb CIF (down 8.3A¢, to 592.0A¢/kg CIF).
Another factor holding the beef market back in the US is the ongoing uncertainty as to which direction the domestic supplies and prices will go into the northern summer. With stocks reasonably well covered for the peak of grilling season in late May and June, retailers do not want to find themselves overstocked with beef for late in the season.
Just over a third of the way through May (to Wednesday 11 May), Australia had exported 37,633 tonnes shipped weight (swt) of beef – indicating a significant increase in trade during May compared with April. Of this total, 10,550 tonnes swt were exported to the US. It should be noted, however, that May is often one of the largest export months for Australian beef, with large numbers of cattle processed ahead of winter.
