April 28, 2004

US Beef Futures Rebound On Domestic Shortage
 

Beef futures in the United States rebounded strongly following suggestions of a domestic shortage of beef available for slaughter.

Gary Booth, from Mann Financial Services, says futures are back to the levels they were before the outbreak of BSE late last year.

He says while there's optimism about US trade resuming with Japan, the rise is due to a growing appetite for beef within America itself.

"Futures markets in the US have recovered dramatically.

"In actual fact, in the last two months we've seen a spectacular rise in meat prices, and that's really based on a shortage of immediate killable beef in the states, or if you like, beef in the supermarket.

"I mean there is plenty coming down the pipeline; nonetheless it's not there yet, and I think what also surprised most is the consumption of beef within the US: I mean, the collapse in meat prices in December triggered what was a huge increase in beef demand within the US"