Limited spot supplies support US imported beef prices
19 November 2018
US imported beef prices found further support this week, as US end users looked to secure product for delivery next year. However, spot supplies for lean manufacturing product remain somewhat limited, as Asian markets continue to demand product from Australia, and New Zealand suppliers are happy with the volume of orders already in place.
The imported 90CL beef indicator lifted US0.5¢, to US184.5¢/lb CIF (AUD560.37¢/kg CIF).
NZ bull slaughter typically starts to pick up at this time of year and cow slaughter starts to lift in February. At present, slaughter levels in NZ have followed a normal seasonal trend, underpinned by adequate grass coverage for this time of year. Weak dairy prices and the increase in the non-commercial cattle supply could also bolster New Zealand slaughter in Q1 next year.
Market highlights for the week ending 16th November:
- Analysts polled ahead of the regular USDA report expect on feed supplies on November 1 to be up 4.3% year-on-year
- Feedlot marketings are forecast to be up 4% compared to a year ago, largely due to an extra marketing day last month.
- US 50CL beef prices so far have closely followed seasonal trends. Prices are expected to be higher in Jan/Feb.