US Prices Continue To Ease
US - The US manufacturing beef market dropped again this week, despite imported beef supplies remaining very tight from Australia, Canada, New Zealand and Uruguay.
16 May 2011
1 minute read
Demand from the US end-user sector appears to be constrained, indicating a lack of confidence in the level of consumer beef demand over the summer months.
Given manufacturing beef prices started this year at a record high, end-users may have been holding off till prices ease. However, there may be a flurry of activity over the next couple of weeks, particularly as previous reports have indicated that US end-users were short bought.
Based on the five-year average, prices for imported lean manufacturing beef tends to seasonally increase heading into the US summer grilling season, particularly leading up to the US peak beef consumption period, Memorial Day weekend which occurs at the end of May.
The imported 90CL cow beef indicator dropped 4¢ on last week, to 191US¢/lb CIF, but remains 25¢ above the same period last year. The very high A$ is making a significant impact on returns, whereby the 90CL cow beef indicator eased 5.6¢, to 368.4A¢/kg FAS.
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