Australian 90CL beef prices hit record high amid soaring US demand

Platts, part of S&P Global Commodity Insights, assessed Australian 90CL beef prices soared 6.7% month over month, reaching a record high of $6,412/mt on Feb. 19. This figure marks the highest level since the assessment began in June 2024, surpassing the previous peak of $6,325/mt recorded in July 2024.

The surge in prices is attributed to strong demand from the US for lean beef, primarily used in burger patties, amid limited domestic beef production. According to the US Department of Agriculture, the US cattle herd size is currently at its lowest level in over 70 years.

In light of this strong demand, Australian beef exporters have noted a trend of rising offer prices for Australian lean beef, which are outpacing supply. A market source indicated that bid prices for Australian 90CL beef (CIF Philadelphia) have recently been reported above $2.98/lb.

Another contributing factor to the increasing prices is the rise in Australian cattle prices, driven by robust demand during favorable seasons in cattle-growing areas. As highlighted by a market source, processors and packers are compelled to pay higher prices for cattle.

Data from the Australian Department of Agriculture, Fisheries and Forestry (DAFF) reveals that in January 2025, total frozen boneless beef exports from Australia to the US increased 24.6% year over year, totaling 17,654 mt. This marks a consecutive three-month year-over-year increase in Australian frozen beef exports to the US, with notable yearly increases of 71% and 18.3% recorded in November and December 2024, at 22,914 mt and 31,955 mt, respectively.

A local news outlet reported an unusual spike in US demand for hamburger beef in February, driven by a slowdown in domestic production. Further rises are anticipated in the coming months, particularly as peak demand for grinding beef arises in preparation for the Memorial Day holiday.

Commodity Insights analysts project that US beef production for 2025 will decline sharply by 4% to 5% due to the slow rebuild of the beef herd. Consequently, lean beef production is expected to tighten, with reduced cow availability on a national scale. Seasonally, continued downswings in lean beef production are projected to remain moderately below the levels seen a year ago.