As we come to the close of the largest beef export year to the US in a decade, exporters have started to find buyers a bit more reluctant to keep paying the record high prices seen from July to October, according to the latest update from Meat & Livestock Australia.
The Australian cattle kill has not relented yet – in fact finding new highs for the eastern states – while NZ slaughter has started its season well ahead of the same time last year, as their processors and exporters have looked to capture the good prices on offer. This is likely to carry on into the New Year as well.
The positive side for Australian beef is that the US kill remains well below past years, and overall supplies of beef mean that imported beef is still needed to meet consumer demand. This should not be counted on to continue indefinitely, but is likely to remain the case at least through the first half of 2015.
The imported 90CL cow beef indicator was 5US¢ cheaper this week, on 270.5US¢/lb CIF (up 3.3A¢, to 679.3A¢/kg FAS), continuing the fall that started in November. All other reported prices were back between 2–9US¢lb CIF, according to the weekly survey conducted by Steiner Consulting Group.