US demand lifts imported beef prices
18 May 2017
US imported prices lifted this week, as a result of higher prices on the US domestic market for lean grinding beef, and further supported by limited spot availability both domestically and from Australia and New Zealand.
The imported 90CL beef indicator moved 5US¢ higher from week-ago levels, to 218.5.5US¢/lb CIF (up 12A¢, to 649.62A¢/kg CIF).
Supply constraints out of Australia and New Zealand continue, however recent higher slaughter numbers have stimulated some improvement in spot availability of imported product. The seasonal drop in New Zealand availability is approaching which will further contract spot supplies.
US Domestic Outlook
End users in the US have continued to find product difficult to come by, particularly with the Memorial Day holiday on the horizon and further ahead July 4th celebrations. Steiner Consulting group reports that the availability of fat trim in the domestic market is very limited, underpinning a shift higher for imported beef prices and strong demand for imported fat beef trim.
Limited supplies in the US are supporting prices that are above usual seasonal trends; however Steiner Consulting Group does not anticipate an immediate drop in beef prices, reporting that a move lower will only occur once consumers see price increases through the retail sector. Retailers may look to raise prices on selected items, driving demand lower however any impact will need time to play out in the market.
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