December 21, 2009

Tight supplies lead to Australian beef prices rise

Import prices for Australian beef in the US were steady to slightly higher this week due to limited supplies, with the majority of December shipments likely to have been shipped.

Prices for US domestic prices also strengthened during the week.

CIF prices for Australian 90CL averaged 134US¢/lb CIF this week, up 1US¢/lb on last week. In Australian dollar terms, prices increased 9.3A¢/kg to reach 301.2¢/kg FAS.

Feed supplies and prices remain a concern for US livestock producers. Although corn and soy prices have decreased after the highs of 2008, the ratio of livestock prices to feed is still below long term averages.