US imported and domestic beef prices trend lower

US imported beef prices moved lower again this week, as a result of a decline in prices for domestic lean grinding beef and an increase in supplies from New Zealand.

In the weekly update commissioned by MLA, the Steiner Consulting Group reported that the imported 90CL beef indicator eased 2US¢ from week-ago levels, to 209.5US¢/lb CIF (up 0.5A¢, to 614.76A¢/kg CIF).

Steiner Consulting group reported that market participants observed greater availability of product from New Zealand this week, with packers more willing to lower asking prices as a result. There is a further expectation for cow slaughter to increase in May and through into early June, in line with seasonal trends. However, Steiner Consulting Group comment that New Zealand cow slaughter has been tracking well-below the norm for this time of year – for the week ending 18 March, cow slaughter was back 48% year-on-year, at 21,960 head.

Supply constraints out of Australia are ongoing, with high cattle prices, improved moisture conditions in many key supply regions and reduced female slaughter as the herd looks to rebuild contributing factors. Slaughter numbers are expected to remain low in the coming months and Steiner Consulting Group reports that Australian packers are reluctant to lower asking prices as a result. Availability will further be affected by the upcoming public holidays (Easter and Anzac Day).