THE market for imported beef in the US has held steady to even a bit higher this week even in $A terms, despite the $A continuing its rise against the $US.
The imported 90CL cow indicator in $US terms on Thursday had gained US1.5¢, to US131¢/lb CIF.
Converted into Australian currency, it rose by 3.5¢/kg, to 337.9¢/kg FAS, based on the $A exchange rate at US77.7¢ on Thursday.
US cow slaughter is currently running behind year-ago volumes, but slaughter is expected to pick up as more dairy cows are processed over coming weeks, due to the Cooperative Working Together dairy herd buy-out scheme.
Lower beef cow slaughter is expected to offset the increased supply in dairy cows, although pasture conditions, which started the season on a positive note, have since deteriorated and could force some beef cows to market.
Considering the above and the $A expected to rise to the US78¢ mark, MLA says it appears that the outlook for the lean manufacturing beef market in the US is fairly bearish.
What might keep the downward trend at bay, the MLA suggests, is if imported supplies tighten or demand grows.
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