US beef prices rising as slaughter remains at record highs

Published Feb 23, 2023

Tridge summary

The article highlights the anticipated rise in beef prices in the US due to expected decreases in production, despite high slaughter rates. The Meat & Livestock Australia (MLA) reports a shrinkage in the US cattle herd, which could result in a supply shortage and increased demand for Australian cattle and beef. Despite a short-term supply glut, the US 90 chemical lean imported beef indicator has risen by 5% in 2023, indicating a global demand for beef. The article also discusses the potential effects of Brazil's suspension of beef exports to China due to a case of bovine spongiform encephalopathy, and its possible impact on global beef supply. It concludes by suggesting that these supply concerns are beneficial for Australian beef, which is positioned to meet high quality requirements as US volumes decline.

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

Original content

Expected declines in American beef production are pushing prices up, while slaughter rates remain at historically high levels. American production As discussed in the recent Meat & Livestock Australia (MLA) January Cattle Projections, dynamics in the US cattle herd are an important driver of cattle prices in Australian saleyards. As a competitor of Australian beef, the US market subsequently affects the Australian market. For the past several years, the US has been in a technical destock. In January, the United States Department of Agriculture (USDA) released data estimating that the herd had shrunk by 3% to 89.3 million head. At the same time, US slaughter rates are likely to soften later this year, and an end to the drought in the US’s south and south-west regions would be likely to drive an aggressive herd rebuild, limiting supply and increasing demand (and prices) for Australian cattle and beef. Slaughter rates In the first five weeks of 2023, US slaughter stood at 3.16 ...

Source: Mla