May 18, 2009
Higher Australian dollar dampens beef demand from Korea
While Australian beef exporters expressed confidence in the Korean market, shipments to South Korea had decreased in early May as the higher Australian dollar reduced interest.
The Australian dollar had appreciated against the US dollar, and cutbacks in weekly shifts by major processors had also affected exports.
Most Korean traders conduct business in US dollar, so the six cents increase in the Australian dollar against the US dollar has strongly impacted available funds for Australian beef.
Australia's beef stock levels remain low, but companies have not been urged to increase volumes due to flat consumer demand.
Wholesalers in the Korean beef market did not show much activity, resulting in steady prices for Australian beef. US beef prices in the Korean wholesale market were also unchanged.
