US Continues to Drive Global Beef Markets

The US cattle and beef markets have continued to dominate the global market.

There has been a sharp drop in cattle futures over the first half of December resulting in the Chicago Mercantile Exchange increasing the daily price movement limit to aid in price discovery.

And according to the market economists Ron Plain and Scott Brown, there has been a chaotic couple of weeks with prices down to start and then rising.

However, the Dutch based agricultural market analysts Rabobank show that the import demand from the US is one of the main factors controlling the balance in the global market.

The Mexican and Canadian herds are being run down because of actions by the US and imports of Australian beef to the US are decreasing.

Both Australia and New Zealand are reporting a fall in demand from the US for their beef.

The market is also being hit by a port dispute on the west coast of the US that is
forcing quantities of beef in to storage. Some warehouses are at near capacity.

One of the other major drivers for the global meat and beef market is Russia and the dispute with the EU over actions taken in Ukraine and Crimea.

Recent reports from Russia show that while pig meat and poultry production are growing beef production is declining together with the beef herd.

This can only create opportunities for exporters from South America – in particular Brazil and Argentina, although for Argentina debilitating exchange rates could affect trade.

Because of the Christmas and New Year holiday season, the next edition of TheBeefSite newsletter will appear on Wednesday 7 January.

A happy Christmas and prosperous New Year to all our readers and supporters