Export prices to our two largest beef markets, Japan and the US, have risen by around 20% over the past two months, principally due to low supplies out of Australia and a small fall in the A$ from around 92 to 89US¢.
Chilled grassfed and grainfed fullset prices (in A$ terms FAS) to Japan are now 11% and 3%, respectively, above the average for 2009. Demand for grassfed beef has been assisted by low beef stocks in Japan and consumers ‘trading down’ to cheaper grassfed product from grainfed beef in these tough economic times.
Similarly, the price of 90CL cow beef to the US (in A$ terms FAS) is now close to the average for 2009, and only 1% below the five-year average. This recovery has essentially reflected a 33% year-on-year fall in imported beef supplies.
On the back of increased processor interest and the recent rains, prices for Japan ox rose 13¢ this week to 309¢/kg cwt, bringing the lift since the lows of December to 14%. Similarly, US cow prices have risen 16% since their December low.
Heavy and trade lamb prices made a sizable correction this week, possibly in the expectation of good supplies of well-finished lambs through autumn. However, prices for restocker lambs and sheep remain close to recent records.
Source: MLA.com
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