November 26, 2007

Better movement for US beef trade

After months of sluggish US grinding beef demand and lower imported beef prices, trade was more active this week as domestic 90s rose pushing optimism for a lift in the coming months while 90 CL prices remain steady, according to Meat and Livestoc Australia.

The trade reported its first clear lift in demand for many months, with seasonal supply and demand factors pointing to a further strengthening after today's Thanksgiving Holiday. Also, the high cow slaughter in the US is expected to recede at some point, as producers move to end herd liquidation.

Adding to the brighter note, the fall in the A$ allowed prices to Australian exporters for 90CL beef to rise 3 percent this week, to 294.3Australian cents/kg FOB.