U.S. beef prices see indirect benefit from increased Chinese demand

U.S. beef prices see indirect benefit from increased Chinese demand

Don Close with Rabo AgriFinance

Reduced imports of lean beef trimmings from Australia and New Zealand have helped push U.S. cattle prices higher.

Rabo AgriFinance animal protein analyst Don Close says Australia

and New Zealand have been shipping more beef to China, which has caused a

significant drop in their shipments of lean beef trimmings to the U.S.

“Imports of New Zealand beef trimmings into the states have

been off roughly a third this year,” Close says, “and we’re expecting to see

those shipments down another third in 2020, just because of the volume of trade

going to China.”

Close says the reduced imports of “manufacturing beef” have led

to sharply higher prices, forcing fast food burger restaurants to use more

domestic beef.

Continue reading U.S. beef prices see indirect benefit from increased Chinese demand at Brownfield Ag News.