Keep Your Eye on US Distribution Centre Sales
US - The US manufacturing beef market continued to ease this week, as US traders wait for Memorial Day weekend sales performance before committing to new orders.
4 June 2010
1 minute read
To gauge the success of the Memorial Day weekend beef sales, all eyes will be on distribution centre orders being placed (that deliver to both foodservice and retail customers) at the end of this week/early next week, according to Meat and Livestock Australia analysts.
The size of their beef orders over the coming week will likely dictate whether the market has already reached its peak in prices, or if prices will continue on to a market peak leading up to the 4th July holiday period.
Tight imported beef supplies will also support a rising market over coming months, as imports of US beef tend to seasonally decline in July and August, MLA said.
Australia though appears to have recently ramped up exports to the US, with May data showing the highest monthly volume sent to the US in 12 months, at 23,871 tonnes swt (although this volume is steady on the same time last year).
Imports from Canada and Mexico remain above year ago levels.
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