Korean market downturn
AUSTRALIA - Exporters reported minimal buyer interest from the Korean market this week, including on traditional items such as chuck roll.
16 March 2007
1 minute read
Bids made were below what Australian processors were willing to accept and exporters looked to alternative markets. The main factors in the market downturn are the high stocks in the market, seasonally low demand by end users and the prospect of US beef arriving in the market soon.
The Korean wholesale market also weakened this week, due to little buyer activity and the anticipated re-entry of US beef. The wholesale price declined further, leading to some sellers dumping product onto the market to avoid further losses.
The Korean government announced last week that every box of US beef would continue to be inspected, but that it would reject only those boxes where banned bone fragments are discovered. Also, significantly, there was no mention of the suspension of packers for repeated discovery of bone chips. Although the US government has expressed dissatisfaction with the compromise, the trade anticipates US beef to be available in the market soon.
TheCattleSite News Desk
