June 4, 2007

Prices of US beef imports remain steady

Imported beef prices in the US traded similar to last week's levels, with 90CL (chemical lean) cow beef losing around 1 US cents per pound (lb), to average 126 US cents per pound cost-insurance-freight (CIF). US importers reported that Memorial Day business (last weekend) was in line with expectations.

The general sense is that ground beef demand over the summer grilling season should hold up well in spite of a weaker US economy and rising gasoline prices. US domestic lean beef prices are currently around 15 percent higher than a year ago, at a time when domestic cow slaughter is also running 15 percent higher. US domestic beef prices are expected to decline over coming weeks, then move higher in preparation for Independence Day grilling business.