Global cattle prices showed opposite trends
Global cattle prices have diverged into two distinct groups, according to Rabobank’s third quarter beef report.
Global cattle prices are divided into two separate groups. While prices in North America are rising, prices in Europe and the rest of the world are falling.
A decrease in supply and high consumer demand in the United States lead to an increase in cattle prices, while in most other regions, a decrease in consumer demand and/or an increase in supply led to a decrease in prices. Compared to last year, US cattle prices have jumped nearly 30%, meanwhile Australian cattle prices dropped by more than 30%.
This price discrepancy is the largest that has been observed in the last ten years, and is comparable to the period of 2014, when prices in the United States were also at a very high level.
Rabobank expects total beef production in the six countries/regions monitored to decline slightly (-1% YoY) in the third quarter of this year, and then return to levels similar to those of 2022 in the fourth quarter and the first quarter of 2024.
Source: emeat