U.S. beef prices are rising and slaughter remains at record highs

Published 2023년 3월 3일

Tridge summary

Meat & Livestock Australia's (MLA) recent report discusses the impact of the declining US cattle population on Australian cattle prices. The US Department of Agriculture reported a 3% decrease in the herd to 89.3 million head in January, leading to anticipated lower slaughter rates and potential supply shortages. Despite short-term oversupply, US beef and cattle prices have risen. The end of drought in the US south and southwest could further decrease supply and increase demand. The end of quarantine in China has had a positive effect on beef imports, and a stronger economic outlook is expected to boost market confidence. These factors are crucial for global market dynamics, particularly for Australian beef, which is poised to meet the demand as US supplies decline.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

As discussed in Meat & Livestock Australia's (MLA) recent January livestock report, the dynamics of the US cattle population is a significant driver of cattle prices at Australian auctions. As a competitor to Australian beef, the US market subsequently influences the Australian market. In the last few years, the United States has seen a decline in livestock. In January, the US Department of Agriculture (USDA) published data showing that the herd decreased by 3% to 89.3 million head. At the same time, US slaughter rates are likely to decline later this year, and the end of the drought in the southern and southwestern regions of the US is likely to lead to an aggressive recovery of herds, which will limit supply and increase demand (and prices) for Australian cattle and beef. In the first five weeks of 2023, US slaughter was 3.16 million head of cattle (unchanged from last year). Slaughter of cows and bulls has decreased slightly, but the female slaughter rate for the current year ...

Source: MilkUA