January 18, 2010

US imported beef market posts higher prices

The US imported beef market started 2010 on an upwards swing, with prices in US¢ per pound surging 6% from where they finished 2009.

A build up in demand over the holiday period, combined with limited supplies, have been behind the stronger start to the year, with expectation for imported volumes to remain tight into the first quarter.

While the higher import prices to the US will be welcomed by Australian exporters, stronger import prices could be eroded by the strengthening Australian dollar in coming months. While US¢ per pound prices this week were 17% above the corresponding period from 2008, returns in Australian dollar terms were 17% below 2009 levels, finishing the past week at 309A¢/kg, revealing the impact of the higher currency on exporters.