December 14, 2009

Australia sends limited beef supplies to US

Tight supplies, a strong Australian dollar and higher shipments to other markets, particularly in Asia, limited Australian beef exports to the US in November.

Exports to the US during November fell 55% year-on-year to 13,115 tonnes swt. Australian beef and veal exports to the US in the first week of December were less than 2,500 tonnes. In December 2008, Australia exported 25,000 tonnes of beef to the US.

This week Australian 90CL prices averaged 133US¢/lb CIF, down 0.5US¢/lb on last week. In Australian dollar terms, however, prices increased 3.6A¢/kg, thanks to an easing in the Australian currency, to reach 291.9¢/kg FAS - 25% lower than a year ago.

New Zealand was relatively active in the market this week coinciding with its peak marketing season and packers trying to sell as much product before plant holiday closures.

Domestic grinding beef prices in the US were boosted by a decline in domestic cattle slaughter levels. These lower levels were attributed to some packing plants being unable to operate, with blizzard conditions across much of the Midwest and the Northern Plains regions. While these slaughter reductions have not benefitted cutout values, overall supplies of trim have fallen, especially fattier types.