US imported beef prices moved lower for the fifth consecutive week. While some overseas packers were resistant of lower US bids, but those looking to secure orders for coming months have had little choice.
The majority of offers made on product for delivery in September and October 2017 were lower than the current spot price.
The imported 90CL beef indicator declined 5US¢ from week-ago levels, to 199.92US¢/lb CIF (down 11A¢, to 567.46A¢/kg CIF).
Earlier in 2017, during the build up to the US grilling season, a combination of robust domestic beef prices and tight supplies helped support the price of imported product.
Steiner Consulting Group report that the reserve is now in play, as Australian supplies begin to steadily increase at a time when domestic fed beef prices have started to ease.
The demand for US domestic fresh lean beef remains strong, supported by the retail sector.
However, demand from foodservice, in particular traditional fast food operators has softened, as many anticipate the seasonal decline in domestic prices.
The US fed cattle futures price moved lower, as concerns of falling prices continuing into the spring were reflected in the market.
However, the prospect of strong demand post Labor Day holiday (4th September 2017) may help reduce the downward pressure being applied to imported beef prices.