Global Beef Markets Face Volatility

Global beef prices ticked up in quarter one of 2016 after declining for much of 2015, according to the Rabobank Global Beef Quarterly Q2 2016.

However, the global beef index shows signs of dropping again as softening prices in the US and Canada battle strengthening prices in Australia and Brazil, the report said.

“Volatility is a key theme across most markets at the moment," said Angus Gidley-Baird, Senior Animal Protein Analyst at Rabobank.

“A range of factors are creating a degree of uncertainty, including the economy and exchange rates influencing Brazil, seasonal conditions impacting Australia, the economy impacting China, and market volatility impacting the US.” – Click here to read more about regional beef markets.

Meanwhile in the UK, a new report on the prime cattle market highlighted the importance of meeting processor requirements to get the best returns on cattle.

“This is particularly pertinent in a falling market, where delivering the right kind of animals will minimise any loss of value,” said Stephen Howarth, market specialist manager for AHDB Market Intelligence.

“As specifications have tightened and penalties for missing target ranges increased, it appears that some producers have not responded to these market signals, contributing to the reduction in the value of the GB prime cattle market over the period.” – Read more.