October 7, 2014

 

Higher beef prices predicted for the rest of 2014  

 

 

High beef prices, especially in the US, Brazil and New Zealand, will continue for the rest of the year, says agricultural lender Rabobank in its third-quarter report.

 

The three countries, the report says, are enjoying record prices due to record tight supplies. And the situation, Rabobank adds, is likely to last for some time.

 

"There is largely positive news for the global beef industry as strong demand and tight supply are showing no signs of slowing, pushing prices – in some cases record prices–even higher," says Rabobank analyst Angus Gidley-Baird.

 

The Rabobank's latest quarterly report says US demand for both local and imported beef shows no signs of slowing down despite the unprecedented price levels.

 

Brazil has also seen record prices due to strong demand and plummeting supply, driven partly by rising Russian orders.

 

With the Chinese market set to reopen after being closed since 2012 due to the mad cow disease, the supply situation could become tighter and prices soaring further. . 

 

On Australia, Rabobank has this to say: "Cattle prices responded on the back of some decent rainfall during August, although the dry seasonal conditions remain a concern. Record slaughter continues to drive record exports, with strong international demand helping to support prices."

 

On New Zealand: "Beef returns have remained at record levels, and with a forecast of tight supplies and very strong US demand, the industry outlook for the remainder of 2014 and into 2015 is optimistic."

 

On Canada: The cattle market continues to enjoy a surge in cattle prices.

 

On Argentina: Production is expected to increase, but exports remain at low levels.

 

On Mexico: Availability of cattle remains scarce, restraining production.

 

On Indonesia: Better supply has led to softening prices.

 

On the EU: "The market is expected to remain under pressure and, at best, stabilise with the seasonal increase in demand unlikely to result in higher prices given the increasing competition with lower pork and poultry prices."