February 4, 2008

US beef prices stronger on tight global supply

Prices for US beef has gained significantly this week, as demand increased with continued tight supplies especially from Australia and New Zealand.

The US 90-centilitre (CL) manufacturing beef prices jumped 2 cents this week, to 304.1 cents/kilogramme, marking the highest weekly price since September last year.

While US beef prices increased 3 cents in US dollar terms, the 2 percent rise in the Australian dollar partly offset the gains in Australian terms this week.

Import prices were also up strongly for most other categories, especially trimming and 95cl bull beef.

Export prices to the US are expected to remain strong in coming weeks, driven by tight imported supplies and steady demand.