US imported beef market slows on weaker demand

Imported beef prices into the US were weaker this week mainly due to lower domestic demand and supply levels.

CIF prices for Australian 90CL averaged 146US¢/lb CIF, down 2US¢ on last week, while FAS prices in Australian dollar terms remained steady, losing only 0.6A¢ to 327.7¢/kg FAS, as the Australian dollar dropped.

The market came to a slow as lower bids from the US are seen as an indicator that grinding beef values have reached a seasonal peak. US grinding beef demand generally weaken in late January and early February partly due to strong retail orders pulling back.

Meanwhile, the US beef complex remains uncertain. The cold weather in December and early January is likely to cause more cattle than usual to be marketed in coming months.

Total US cattle inventory is expected to be around 93 million heads, 1.5% lower than a year ago, and the smallest January 1 inventory since 1958.