March 14, 2011

US beef market moves up in March

The manufacturing beef market in the US trended up last week across most categories (lean and fatty trimmings both increased on last week), as buyers started to lock in orders for April and May and competition from other global markets remains.

Prices have not really eased since its rapid rise at the start of the year, with predictions that manufacturing beef prices will continue to move higher heading into the US peak beef consumption period. There have been some forward commitments seen this week out to June/July delivery, but market participants continue to be reluctant to lock in large volumes too far out at current price levels.

With spot manufacturing beef supplies tight in the US, adversity to forward commitments and strong competition for Australian product elsewhere, the market seems fairly bullish heading into the summer months.