Tighter supplies supporting beef price in the US
04 February 2016
Beef in the US import market was more expensive this week across the lean end of product, with smaller volumes out of Australia through January combining with a recovery in demand for product to fill orders for spring.
The indicative imported 90CL cow beef price rose 5.5US¢ this week, to 190.5US¢/lb CIF (up 12.2A¢, to 592.4A¢/kg CIF), a similar change to those recorded for 95CL, and down to 80CL beef products, in the weekly report prepared for MLA by the Steiner Consulting group.
A note in this week’s report is the expectation that US cow slaughter in 2016 will be lower than last year – which was itself a low cow slaughter year. While this should be supportive of lean beef prices in the short term, it will mean more cattle coming through the US production system over the next few years, which will be bearish for beef prices in the long run.
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