In the US cattle and beef market last week, much of the attention has been on the high cattle prices.

The 5-market choice steer indicator in the US so far this month has averaged 13% higher than March 2009, at 92.5US¢/lb. High US cattle prices have been one factor in the manufacturing beef market being very bullish.

US fed cattle supplies are tight, with cattle on feed numbers and placements continuing to fall. Cattle carcase weights are also declining, limiting the amount of beef trim produced. Overall, cattle carcase weights are currently 3% below year ago levels. Cow carcase weights are also running 3% below 2009.

The US imported beef market continued to move higher amid tighter supplies, particularly in the spot market for 80CL and 85CL trimmings.

CIF prices for imported 80CL and 85CL trimmings are currently running 26% and 24%, respectively, higher than year ago levels, at 139US¢ and 151.5US¢/lb CIF.