US imported beef prices find support
31 October 2018
US imported beef prices lifted this week as end users turned their attention to securing product for delivery in the New Year. Spot supplies are reported as adequate, supported by a modest uptick in product from New Zealand. However, New Zealand packers appear comfortable with the volume of sales already in place and in no rush to extend forward positions at present.
The imported 90CL beef indicator lifted US1.5¢, to US178.5¢/lb CIF (up AUD7¢ at AUD555.39¢/kg CIF).
US imported grinding beef prices continue to trade at a discount to domestic product, however domestic prices typically increase during the US winter. Cow slaughter numbers have been running significantly higher compared to last year, as a larger US herd also implies more cull cows. Dry conditions and tightening margins for some cow-calf operators has also contributed to the increase in grinding beef supplies.
The US choice cutout value is currently tracking at US213¢/lb, US15¢/lb higher year-on-year. Half of that increase is due to a lift in middle meats (loins and ribs). Brisket and plate values are also higher compared to the same period last year.
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