January 25, 2010

Rising US prices shift buyer focus to Australian beef

Sharply higher US domestic lean grinding beef prices this week shifted buyer attention to imported product, resulting in a solid price rise for imported lean manufacturing beef.

CIF prices for Australian 90CL averaged 148US¢ per pound CIF, up 5.5US¢ per pound on last week. In Australian dollar terms, prices increased 19A¢/kg over last week to reach 328.3¢/kg FAS.

Spot prices are reflecting the low shipments from Australia in November and December, and the current seasonal supply constraints.

Demand for ground beef has increased as is usual for this time of year; however, the outlook is uncertain especially if chicken supplies back up due to a Russian ban on US chicken.

US cow meat supplies have increased recently as high prices for grinding beef and lacklustre cattle prices continue to push more beef cows into the slaughter mix.