January 30, 2004

US Beef Import Prices Fall On Increased Domestic Supplies

The US imported manufacturing beef market fell this week due to increased domestic beef supplies and inadequate consumer demand. 

Increased quantities of US domestic manufacturing beef, due to lower value cuts previously destined for export markets being ground and sold to grinders has reduced the competitiveness of imported 90CL manufacturing beef.  US domestic 90CL and 75CL fell 11.5US¢lb and 15US¢/lb respectively this week. 

US imported Australian 90CL manufacturing beef fell 5US¢/lb CIF this week to 110.5US¢/lb CIF, however remains 18% above year ago levels.  Australian exporter returns fell 7.3A¢ this week to 286.7A¢/kg FAS, with the 1.7US¢ fall in the A$ being more than offset by the fall in imported beef prices.  However, the strong A$, at 76.1US¢, has kept FAS prices 10% below year ago levels.