Since the past couple of weeks, manufacturing beef supplies in the US have been tight, mainly due to a sharp reduction in beef imports.

According to US custom cleared data, imports from Canada, Australia, New Zealand and Uruguay (till March 15) are down 2%, 39%, 18% and 56%, respectively, so far this year.

The lower supplies from Australia have been attributed to wet weather conditions inhibiting the transport of cattle, and producers retaining cattle due to improved pasture conditions. With weather conditions now improving, reports indicate processing in northern areas of the east coast of Australia will ramp up due to a backlog of cattle.

As a result of the tighter supplies and increased spot trading, CIF prices for imported 90CL beef in the US so far this year has averaged 25% higher than the same period last year.