October 13, 2008

The financial crisis continues to cast a shadow over US beef demand, but importers remain optimistic about an improvement in supply.

Most buyers continue to purchase product on a short-term basis, due to concerns on the impact the slowing economy may have on the sluggish foodservice sector.

The 29-percent drop in the Australian dollar in recent weeks has helped to offset the decline in imported beef prices, resulting to an improvement of returns to Australian exporters. 90CL cow prices dropped 6 cents to 148.5 US cents per pound, down 22 percent from late July, while 90 CL product rose by 37 cents to 436 cents per kg FAS.

US importers feel that supplies from Australia and Uruguay will improve in the remainder of 2008, especially with a reported subsiding Russian demand.

As of the first week of October, imports of Australian beef to the US were back 32 percent for the year, while Uruguayan shipments plunged 90 percent.