MONTHLY AUSTRALIAN BEEF WRAP: 90CL prices hit record high on stronger demand

Australian 90CL lean trimmings prices hit a record high in October, driven by higher Australian cattle values and stronger demand, even as US consumption slowed toward the end of the month.

Platts, part of S&P Global Energy, assessed the average price of 90CL beef FCA Australia at $7,155.70/mt in October, marking the highest level since the assessment was launched in June 2024.

Platts assessed 90CL beef FCA Australia at $7,195/mt on Oct. 31, up 2.9% from $6,995/mt on Oct. 1.

Two local exporters attributed the price increase to rising cattle values in Australia, fueled by higher demand from the US and Asia.

The processor cow indicator increased by 42% year over year and 1.8% month over month, reaching Australian 381.45 cents/kg live weight on Oct. 31, according to the National Livestock Reporting Service.

Some importers in the US expressed strong interest in securing upcoming seasonal positions, while others remained cautious, awaiting potential adjustments to US tariffs, according to one of the local exporters.

The exporter expects lean beef trimmings prices to continue rising toward the end of the year, with levels largely dependent on US tariffs imposed on Brazilian beef.

Brazil is expected to remain subject to a 50% tariff on beef exports to the US when the country's beef export quota is renewed in early 2026, providing Australian beef with a competitive advantage, according to the exporter.

The other local beef exporter expects US demand for Australian lean beef trimmings to remain robust into the first quarter of 2026.

At the beginning of October, offer prices for Australian 90CL lean beef trimmings were reported at $3.45-$3.50/lb ($7,606-$7,716/mt) CIF Philadelphia for shipments scheduled for November-December, according to market sources.

By mid-month, offer prices reached $3.50-$3.60/lb CIF Philadelphia, while bids were reported at $3.45/lb CIF Philadelphia. A trade was reported at $3.46/lb CIF Philadelphia, according to a local market source. However, no US bids were received toward the end of the month for 90CL offers at $3.50/lb and 85CL offers at $3.25/lb, according to a local exporter.

Market sources said US importers have sufficient stocks to last until year-end and remain cautious due to a potential increase in the US quota for Argentine beef, as well as possible negotiations between the US and Brazil to lower tariffs on Brazilian beef.

Asia

Importers were reported to be facing some market challenges in North Asia.

In Japan, imported beef prices have been rising due to stronger global demand for Australian beef, increasing cattle prices and limited supply from the US, exacerbated by a weaker yen, according to market sources.

A representative from the local meat trader association and two local beef importers said that Japanese consumers have been increasingly shifting toward more affordable protein options, with the limited supply of domestic beef also contributing to the continued reliance on imported alternatives.

The beef market in South Korea mirrored the trends observed in Japan, with rising offer prices from Australia and the US weighing on the market, according to a South Korean importer.

Supply in the live cattle import market in Indonesia was reported to be tight due to limited supply from Australia amid stronger global demand, a local market source said, adding that Australian live cattle prices were reported at $3.40-$3.50/kg and $3.50-$3.65/kg for November and December shipments, respectively.

In the Philippines, beef demand increased in October as the country entered its peak season, with most importers preparing for Christmas and year-end celebrations, according to a local importer.