October 28, 2008
There still lingers a gloomy sentiment within the US market with considerable uncertainty remaining, due to volatile currency movements and expectations of a significant decline in beef demand.
The US imported beef market continues to respond to these concerns with prices still on the decline. Trading positions remain stagnant as buyers take a hand-to-mouth approach and scale back interest in forward trading.
On a positive note, the A$ is currently hovering under the US70Â¢ mark which has placed imported lean manufacturing beef at a discount to domestic product. Imported 90 CL cow beef averaged US137.5Â¢/lb CIF this week (a 1Â¢ decline on last week), while US wholesale 90CL beef trim traded at 151USÂ¢/lb.
While there is much concern within the US cattle industry to the extent of which domestic cattle prices will decline, particularly fed cattle, the lower value manufacturing beef trade is likely to fare better.