19 June 2023

Holidays in states on consecutive weeks disrupts processing programs this time of year. There was some easing in national cattle slaughter and the linear trend since 2020 continues lower.

Average national cattle slaughter year to date 120 thousand head. Queensland cattle slaughter 65 thousand head and a lower female component down to 37%

Queensland cow slaughter 26 thousand head.

While the USA fresh beef market is very strong, grinding beef for fresh processing is stable but still well higher than the imported frozen 90 cl indicator from Australia and New Zealand. The calculated Qld medium cow cutout in still positive and it will be interested to watch the trends when the latest MLA price grid data is released.

USA fresh and frozen beef arrivals ticked up in week 24 but the downtrend in imported beef continued, with a slightly stronger AUD$.

Imported beef price levels are running about US28 cents below fresh 90cl domestic beef.

Aust NZ  total beef arrivals week 24 2023, up to 8,586 tonnes.                                       
Indicator price of 90cl imported frozen Australian and New Zealand boneless beef 255 US c lb ex dock.                                        
Combined Aust NZ frozen beef trimmings arrivals up to 6,445 tonnes.  Australian beef trimmings up to 2,530 tonnes, New Zealand up  to 3,915 tonnes.                                       
The USDA 90cl fresh lean beef price formulated basis up to US282,86 per 100 lb, EC 281.42 per 100 lb.                                       
USDA daily choice beef cutout value 17 06 2023, up to US$343.09 per 100 lbs.                                        
Weekly US meat production BEEF down 4.8%, PORK up 0.3%. TOTALS down 2.3%.     

USA Australian and New Zealand beef arrivals are running 20% above the low shipment year of 2022.

New Zealand supply and Australian are level pegging at around 79 thousand tonnes each.

US MEF  data indicates that US beef exports are generally down on comparisons.

source: US MEF

Korea is the primary destination for USA beef exports. China ranks 3 behind Korea and Japan. USA pork into China has been lower.

source: USDA FAS

CHINESE MEAT IMPORTS UPDATE MAY 2023 ALL ORIGINS

China Customs released preliminary meat imports for the  month of May 2023. Imported beef unit value was US$5.50 per kg in May and stronger than the Jan to May level.

Below table and chart data highlights the downtrend in Chinese beef import unit values. Mutton and lamb import values are also well down on the same period last year.

Detailed data by origin will be released either today or early this week.

SOURCE: General Administration of Customs of the People's Republic of China   

After peaking at US$7.11 per kg in June 2022, there has been a sharp correction in imported beef unit values. A tick up in recent months but price levels are settling at levels last seen in August 2021.

E&OE

© agInfo Pty Ltd