December 7, 2009

US imported beef market weakens on tight supplies, poor demand

The US imported market for lean manufacturing beef was steady to slightly weaker this week, as beef demand continues to be soft and imported supplies remain tight.

The 90CL cow beef fell 1US¢ this week to 133.5US¢ per pound CIF, though prices remain 14-percent higher compared with a year ago.

Returns to Australian exporters for 90CL averaged 288.3A¢/kg FAS this week, with the high Australian dollar seeing prices remain 20-percent lower year-on-year.

Ground beef demand traditionally declines post-Thanksgiving as retail stores place specials on hams, turkeys and roasts.

In the past, grinding beef has found some support at foodservice, with consumers out shopping more during the holidays.

However, this year's subdued economic conditions with unemployment standing at 10 percent and the subsequent tightening in spending are affecting the holiday-related demand.