Australia: Record export trimmings price surge takes a breather – but it’s only temporary, traders say

THIS year’s dramatic surge in frozen beef trimmings prices – driven heavily by the US market – has taken a breather over the past week, but the consensus is that the pause is only temporary. Lean 90CL frozen Australian imported trimmings, used as a foundation for the equivalent of around one billion US hamburgers each year*, last Thursday were trading at A969.5c/kg – their highest level seen in 24 years of recorded trade data. Market traders say business has softened a little this week, but there is no real sign that the trend seen over the past three months is reaching its end. “The market had to take a breather at some point – it just had to,” a veteran trader into the US market told beef Central this morning. This week’s prices are being buoyed somewhat by an Aussie dollar trading this week in the low to mid 64s (USc), but the underlying reason for the price surge is US demand. Current prices are now officially the highest ever seen, eclipsing even a brief spike in the market ...