May 8, 2012

USDA's weekly beef export data reveals no significant export damage from last month's discovery of a fourth U.S. cow infected with bovine spongiform encephalopathy (BSE), according to reports.

To date, Indonesia is the only country to restrict imports of US beef imports due to the BSE finding. No major US beef markets have blocked imports, despite some political rumblings in South Korea.

"The 'settling' of beef export issues has provided a much needed lift to carcass beef prices," the DLR analysts wrote, noting the average for the Choice 600-900 pound cut-out moved back to US$190 per hundredweight the week of April 22 for the first time since late March. It had reached a record-high of US$198.51 the week ending March 6 just before lean finely textured beef (LFTB) uproar began.

The analysts also noted 50% chem lean trimmings were quoted at US$85.73 per hundredweight on Thursday - a huge recovery from the less than US$50 per hundredweight just three weeks ago but still well below their US$100-plus value just prior to drop in demand for LFTB.