US Beef Trade in Disarray
AUSTRALIA - The US imported beef market remains extremely volatile with financial and credit markets still under immense pressure and the value of the A$ collapsing against the US$.
17 October 2008
1 minute read
US end users remain ambivalent about the beef market, as the financial crisis threatens to cause a further slowdown in the foodservice sector.
According to Meat and Livestock Australia, this has translated into little forward trading interest as participants take more of a hand-to-mouth approach.
Prices for 90CL cow beef dropped another 7% this week, to 138.5US¢/lb CIF, while in A$ terms the rate of the decline was less, down 5% to 416.7A¢/kg FAS.
While bearish sentiments in the market remain, there is some optimism as the recent depreciation of the A$ places Australian beef in a price competitive position. Some market participants are cautiously watching the A$, as its recent dramatic decline could reverse just as quickly.
TheCattleSite News Desk
