US imported beef prices seesaw

US imported lean grinding beef prices moved lower at the beginning of the week, before making a recovery in the last day. Market participants continue to be faced with the reality of limited spot availability.

The imported 90CL beef indicator increased 0.5US¢ from week-ago levels, to 222.5.US¢/lb CIF (up 1.5A¢, to 646.82A¢/kg CIF).

Supply Constraints

The seasonal decline in New Zealand beef supplies is underway, leaving end users with limited opportunity to secure multiple loads for delivery in July and August. Overall slaughter numbers out of New Zealand in May were strong, helping support short term spot supplies.

End users have increasingly looked to Australia in order to secure product. However, Steiner Consulting report Australian packers already have short term orders to realise and robust demand from Asian markets continues to challenge US end users.

Brazilian Imports

Imports of Brazilian beef began to enter the US following access being granted last year. In May, Brazilian beef exports were reported to be just less than 4,500 tonnes shipped weight. However, at a time when exports to the US looked to be accelerating, five Brazilian processing plants have been delisted and are now ineligible for shipping beef to the US.

US Cattle Prices

US cattle prices declined over the past week. Last Monday, the choice steer (five-area negotiated sales) was 136¢/lb lwt; the same indicator closed yesterday at 126¢/lb lwt. Futures markets have eased by a similar magnitude. Click here to view Are US cattle prices past their peak?

Click here to view Steiner Consulting US imported beef market weekly update