November 23, 2009

US market steady on tight imported supplies

Limited volumes saw the US imported beef market remain steady this week.

CIF prices for Australian 90CL averaged 135US¢/lb CIF, up 1US¢/lb on last week. In Australian dollar terms, prices increased 5.5A¢/kg over the past week to reach 293.3¢/kg FAS - 23-percent lower than a year earlier.

Prices for domestic 90CL fell around 2US¢ this week. Demand for domestic grinding product in November and December tends to soften due to the focus on hams and turkeys for Thanksgiving and then hams, turkeys and steaks for Christmas and New Year celebrations.

Beef cow slaughter has increased sharply in the past month and the rate of increase has been faster than the normal seasonal increase for this time of year and coincides with the start of the fourth round of dairy herd reduction.

Bids to remove 26,412 dairy cows were accepted in late October by Cooperatives Working Together, with processing reported to commence this coming week.