US imported beef market steadies
30 April 2018
The US imported beef market stabilised last week, as while supplies from Australia and New Zealand lifted, so too did US cattle prices, causing market participants to hold firm on asking prices.
The imported 90CL beef indicator was unchanged in US$ terms, at US197.5¢/lb CIF (up AUD12.9¢ at AUD573.4¢/kg CIF).
Spot supplies remained relatively light, but offerings from New Zealand are expected to ramp up in May and June. Large end users have reportedly secured sufficient volumes into June, and are therefore taking a wait-and-see approach to see how the market develops over the next couple of weeks.
Steiner Consulting notes that while prices may be upheld in the short term by stronger seasonal demand and tight spot supplies, there is a concern that there will be an influx of supplies during June and July – when US demand typically softens. This was evident last year, when imported beef prices traded at a considerable discount to US beef during the US summer.
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