July 20, 2009
US imported beef supplies tighten
The imported beef supplies in the US are tightening, providing a bullish outlook for the market in US dollars terms.
The imported lean manufacturing beef market in the US this week gained ground on last week, with 90CL cow beef lifting 3US¢/lb to average 132.5US¢/lb CIF. However, the appreciation in the Australian dollar over the past week eroded much of the benefit to Australian exporters.
Supplies are set to tighten even further as production in New Zealand and Uruguay seasonally eases at this time of year.
Prices are currently being supported by limited supply rather than US beef demand, which has provided a bearish undertone in the market. However, US burger price wars developing between US fast food chains such as McDonalds and Burger King may be supportive of lean manufacturing beef demand over coming months.
