September 20, 2010

Australian beef prices to Japan surge

The heavy rains across Australia in recent weeks has reduced cattle numbers available for processing, resulting in tighter beef supplies and a lift in Australian export prices to Japan.

While interest from Japan improved somewhat this week, the strong Australian dollar and limited supply continued to challenge importers who are still not certain about beef demand in the market, and therefore hesitant to make the mid-term commitment.

In the meantime, Russia and other markets continued strong bidding for frozen hind cuts, narrowing volumes for Japanese buyers.

The US/Japan beef trade talks were held in San Francisco on September 14, the first talks in three years. Working level discussions have taken place, with the US and Japan exchanging opinions concerning BSE countermeasures, according to reports.