US imported beef prices were very firm this week, as inventory remained well below the same period last year.

On the contrary, US cow slaughter is currently 2% above year ago levels, a contributor to US domestic fresh 90CL prices currently trading at a US$0.04 discount to imported frozen 90CL product.

Lower US beef supplies have resulted from rising calf and beef prices as US beef producers retain cows and expand herd operations. Imported beef supplies will also continue to be under pressure, given increased demand from Russia for Australian beef, and reduced shipments from Uruguay and New Zealand.

US end-users are still refraining from markets in expectation of lower prices, but they may be forced to enter as the possible continuation of limited supplies could push prices to historically high levels.