Beef seen declining by ANZ as Australia defies trend on drought
Global beef prices may decline on rising US pork and poultry supply and on signs that demand from some emerging markets is weakening, Australia & New Zealand Banking Group Ltd said.
US pork and poultry production is up 5 percent in 2015 from a year earlier and a large supply of hogs is forecast over the next six months, pushing prices of competing meats lower, analyst Paul Deane said. Beef exports from Brazil were the weakest in three years in the first quarter on lower slaughter and weaker demand. Prices in Australia may still have room to climb as they are 90 cents cheaper than US rates, the biggest discount at any time in the decade prior to 2012, he said.
"Global beef prices are one of the last remnants of the commodity super-cycle, but fundamentals point to lower prices ahead," Deane wrote in a report on Monday. "Financial and economic trends in some emerging markets are also unfavourable for beef prices."
