August 2, 2008

US imported beef market on the decline

Imported beef values in the US have declined in the past few days as US domestic beef values fall.

Some traders are expecting to see an adjustment in lean beef prices, given the rate of advance in prices during July and the increased supply of US beef.

High cow prices and rising production costs has increased US cattle slaughter rate. Cow slaughter for July rose 16 percent on-year to 328,453 head.

With increased US beef supplies and weakening demand, the market may be unwilling to support beef prices at current levels. On a bullish note, the tight imported beef supplies, competition from other markets and robust demand for lower valued beef products could still support high prices of imported beef. This could be particularly so if US domestic cattle production eases and fails to satisfy the demands of the beef sector.