Continuing uncertainty about US-imposed tariffs has quieted trade but maintained prices firm, especially for D-rump and inside cap off cuts. Wet weather across much of Queensland and parts of New South Wales will increase cattle prices and further exacerbate a shortage of cow and grain-fed Angus feeder steers.
The US price for Australian 75CL frozen beef rose by A$0.23/kg to A$7.05/kg. Japan also purchased volumes, with bids, offers and trades ranging between A$6.69-7.42/kg. Domestic demand for chilled product is pushing prices above A$7.70/kg, while Wagyu-branded 75CL trim is reportedly around A$9.00/kg. The price for Australian 85CL frozen beef rose by A$0.23/kg to A$9.47/kg, with most sales to the US. Bids, offers and trades ranged between A$9.30-9.80/kg, with a sale to Malaysia demanding the higher end of the range.
Clarity around the percentage rate of US tariffs will determine future demand for Australia's largest export market. Any rate higher than 10pc is considered impactful and any rate lower than this is tolerable, market participants said. If the potential tariff rate is at the lower end of the range, Australian prices will rise because of high US domestic beef prices, low US beef cold storage inventory, and a declining number of US cattle on feed, market participants said. US feedlot placements on 1 March were down 18pc on the year, US Department of Agriculture (USDA) data show. Total feedlot capacity on 1 March was at 11.58mn head in feedlots larger than 1,000 head.
The price for Australian 100-day grain-fed outside flat fell by A$0.12/kg to A$10.35/kg despite good demand from a range of customers in Japan, New Zealand, the US, and Canada. Bids, offers and trades ranged between A$9.91-10.95/kg. The price for Australian 100-day grain-fed inside cap off rose by A$0.42/kg to A$12.61/kg, with the US and Canada purchasing most of the volume this week. Bids, offers and trades ranged between A$12.20-13.34/kg. Japanese buyers are reluctantly paying higher prices. Weekly price increases are challenging Japanese trader profitability, given flat domestic economic conditions, market participants said.
Record-breaking rain in the past week will lead to stock losses across parts of western Queensland, local graziers said. The rain is largely welcome in the pastoral region after a dry summer and will allow producers to retain animals for further fattening. Many Queensland meatworks had scheduled extra shifts to compensate for lost days because of Tropical Cyclone Alfred earlier this month. These extra shifts are now unnecessary because of an expected supply contraction, market participants said. Processors slaughtered 149,012 head across the nation last week. Slaughter is expected to decline in the short term while cattle movements are restricted, which should also ease continuing container shortages. The Roma Store sale on 1 March is likely cancelled because of the wet weather.
