GLOBAL - Global beef prices ticked up in quarter one of 2016 after declining for much of 2015, according to the Rabobank Global Beef Quarterly Q2 2016.
However the global beef index shows signs of dropping again as softening prices in the US and Canada battle strengthening prices in Australia and Brazil, the report said.
“Volatility is a key theme across most markets at the moment," said Angus Gidley-Baird, Senior Animal Protein Analyst at Rabobank.
“A range of factors are creating a degree of uncertainty, including the economy and exchange rates influencing Brazil, seasonal conditions impacting Australia, the economy impacting China, and market volatility impacting the US.”
In Brazil, the low value of the real, high domestic prices and the slow economic conditions will continue to support increased Brazilian beef exports.
China’s slowing economy is affecting general beef consumption, but higher- and middle-income earners are supporting continued imports as they continue to seek quality beef products. Beef prices will remain stable in the coming quarter, as supply and demand are likely to be balanced.
Australian cattle supplies remain tight and prices strong. Australian cattle prices are expected to remain strong through to the third quarter of the year, given ongoing tight cattle supplies. Buoyed by recent rains, cattle prices have again risen to record levels in June.
US market volatility continues to be a market disrupter. The combination of marked week-to-week price volatility, and equal volatility in the futures market, has made marketing decisions difficult to impossible.
Europe is the most stable beef production region at the moment, with prices strengthening slightly, supported by steady exports, in particular to Turkey, despite ample availability of beef and low prices of competitive proteins.
TheCattleSite News Desk