US imported beef prices drift lower
20 July 2017
The US imported beef market moved lower this week on the back of limited offerings from overseas packers and a reluctance from US end users to cover forward positions.
The imported 90CL beef indicator eased 3US¢ from week-ago levels, to 219.0.US¢/lb CIF (down 14A¢, to 615.39A¢/kg CIF).
In anticipation of a seasonal decline in lean grinding beef prices, US end users were less active in covering longer term positions this week. Steiner Consulting Group also report that a move lower in fed cattle futures, combined with the expectation of more cattle to be placed on feed in July, resulted in market participants taking a more cautious approach.
New Zealand cattle slaughter is now at seasonal lows and end users will have to wait until November before adequate grinding beef supplies return. Supplies from Uruguay and Nicaragua are also tight, while fresh beef exports from Brazil are suspended for the foreseeable future.
Supplies of grinding beef out of Australia remain limited and should the US dollar continue to weaken this may continue to challenge imports from Australia.
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