Slow Market not Reflecting Large Beef Shipments to US18 October 2013
AUSTRALIA - Reports this week indicate that traders have again had little to act on in the lean grinding beef market in the US, with the difference between the ask and offer prices still too large to generate much activity.
However, Meat and Livestock Australia said that Australian beef shipments to the US halfway through October suggest a very large export month (largest for 2013 and third largest since the beginning of 2011).
This suggests a large volume of already negotiated beef being exported, however, if this is not the case, the spot price could trend cheaper over the next few weeks.
The 90CL imported cow beef indicator was unchanged this week in US dollar terms, at 194US¢/lb CIF, but the higher Australian dollar of the last few weeks means that in Australian dollar terms the price is not as strong as recent months, down to 420A¢/kg FAS this week.
Most other imported beef prices were steady to slightly dearer this week, in US dollar terms.
The US Congress has reportedly negotiated a funding deal for the next annual budget.
This means almost 1 million people will be returning to work shortly, which will hopefully return some confidence to the market – and perhaps halt the rise of the Australian dollar, MLA analysts said.
TheMeatSite News Desk