Lean beef trimmings soar on limited US supply, strong China demand

Limited US supply amid strong demand from China has supported the lean beef trimming prices, sources said.

Platts, part of S&P Global Energy, assessed 90CL beef CIF US at $8,135/mt, or $3.69/lb, Feb. 17, for a 30- to 60-day shipment, compared with $7,981/mt, or $3.58/lb, Jan. 16, and with $6,680/mt, or $3.03/lb, Feb. 17, 2025.

90CL beef CIF US assessment rose 2% month over month and 22% year over year.

China has been buying before filling its new quotas, and logistics disruptions in New Zealand supported the offer values, but buyers who had already been covered were not bidding, which made the trade volume thin.

"There has been significant rainfall in New Zealand, materially disrupting their production and exports and a similar event, more than 12 inches of rain over two days, is expected to hit Australia over the next few days," an importer said. "So, we haven't been chasing prices as much with the production disruptions and China demand hysteria."

The lack of lean beef trimmings is prompting grinders to look for other lean cuts, such as Insides, Cap-On, and Cap-off.

"I had some inventory for INSCOs, and a buyer took all my current inventory and is bidding for product that is still in the water," and second importer said.

"For lean beef trimmings, buyers have not hit my offers yet, but the company is not lowering the offer values," the second importer added.

Cow and bull slaughtering fall on year

So far in 2026, 718,000 head of bulls and cows, the main source of lean trims, have been slaughtered up to Feb. 14, down 5.9% from the same period in 2025, and 18.5% from the same period in 2024, according to the latest data from the US Department of Agriculture in its Daily Livestock and Poultry Slaughter reports.

The last weekly slaughter figure was at 108,000 head, up 4.9% from the previous week, 6.2% from the previous six-week average, but down 1.4% from the same week in 2025, and 18.9% from the same week in 2024.

"Non-fed slaughter levels have been propped up by increases of dairy cow slaughter levels, which are nearing the 60,000 head mark each week," Caleb Hurst, cattle and beef principal analyst for S&P Global Energy CERA, said on her last Weekly Beef Update report. "Conversely, beef cow harvest continues to lag year-ago levels as supply continues to tighten due to continued softer culling rates."

"Federally inspected dairy cow slaughter remains elevated relative to historical norms, signaling continued herd turnover as producers navigate tighter milk margins," Katherin Mera Rosas, senior economist for S&P Global Energy CERA, said on her last Weekly Dairy Update report. "While week-to-week movement appears mixed, the broader trend still reflects active culling rather than aggressive herd expansion."

US domestic spot prices

On the US domestic price side, in the fresh 90CLs spot market, the US Department of Agriculture reported Feb. 16 in the afternoon that eight trades occurred at US central packing plants at a weighted average of $426.03/hundredweight, with a range of $425.50-$427.23/cwt. That was the highest value since Oct. 10, 2025.