April 21, 2008

Australia sees higher beef prices in the US

US imported beef prices strengthened this week, as stocks of imported beef continue to remain well below the same period last year, the Meat and Livestock Australia said.

Also assisting the increase in prices this week was higher asking prices from exporters. 

However, while increased imported beef offerings were reported this week in the US, supplies may continue to be under pressure, especially with increased demand from Russia for Australian beef, and reduced shipments from South American countries and New Zealand. .

While US end-users are staying away from the markets expecting lower prices, they may be forced to continue waiting, as imported 90CL beef prices have risen to historically high levels in recent weeks, the MLA said.

Meanwhile, ground beef prices in the US have had a sharp increase in the past few weeks, with prices expected to rise further in May due to the approach of the grilling season.

Even though domestic 50CL prices have weakened this week, trading remains around US$100/cwt, which indicates good demand for grinding beef.