Australia Hopes That US Beef Imports Will Improve
US - The US imported beef market lifted again this week, as the peak beef consumption period is in two months, and imported beef inventories are reportedly tight, with demand improving.
4 April 2011
1 minute read
Overall, the US beef market is pushing higher, with US domestic wholesale prices over the past month increasing (particularly for lean manufacturing beef), and US cattle prices continue to jump from week-to-week and remain well above year ago levels, Meat and Livestock Australia reports.
Despite beef inventories in US cold storage facilities higher year-on-year in February, and US cattle on feed numbers up, it is evident market participants expect the rising trend in prices to continue, with the US cattle futures market this week advancing to record levels.
The April and June CME Live Cattle Futures contracts both settled on Thursday 6¢ above the same period last week, to 121.55US¢/lb and 120.975US¢/lb, respectively.
There are many bullish factors that look to hold the US imported beef market at current levels, if not higher. Australian and Canadian beef consignments to the US are still down year-on-year; US beef exports are forecast to be higher; US production in the second half of the year is expected to ease; and US consumer demand is improving.
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