December 13, 2010

Imported beef supply becomes tighter in US 

The supply of imported beef in the US is set to remain extremely tight this month, as Australian meat processors prepare to close early for the Christmas period.

The reduction in imported beef volumes is causing the supply in the US manufacturing beef market pipeline to run down to very low levels, with frozen boneless beef stocks in October down 7%, to approximately 154,675 tonnes cwt.

Given the tight supplies, the imported 90CL cow beef indicator continued to increase over the past six weeks, kicking 9¢ last week, to US¢180.5/lb CIF - the highest level on record for this time of year.

Australian beef and veal exports so far this month (to the week ending December 6) were only 510 tonnes swt. On the contrary, exports to Japan, South Korea and Eastern Europe so far were 6,581 tonnes swt, 2,425 tonnes swt and 2,077 tonnes swt, respectively.