Rabobank: Global Beef Prices to Hit Record Level In 2013
Rabobank Releases Q4 Global Beef Industry Report
By Amanda Brodhagen, Farms.com
Rabobank released its Q4 and provides an outlook for global beef prices in 2013. Global beef prices are expected to set record highs in the New Year as supply will be minimal and demand will continue.
Rabobank`s final quarter of 2012 highlights the unexpected larger global supply which can largely be attributed to recovery of beef cattle herds in Brazil, Argentina, and Australia. These factors coupled with a sluggish world economy have weighed on prices globally. Looking to some of the key cattle exporting countries, prices have only risen in U.S. and New Zealand. However, it`s important to note that the increases seen in these two countries are not high enough to offset the spike in costs.
When examining year over year comparisons, the Global Cattle Price Index that begins in December was down 11% from where it began in November.
“We expect to see global supply hovering around 2012 levels, with minor ups and downs being determined by the extent to which the increase in Southern Hemisphere will outpace the reduction in Europe and the U.S,” said Guilherme Melo, Rabobank Analyst.
The report concludes that the industry is experiencing a bullish factor and the need for discipline in supply for the poultry and pork sectors. If increases in poultry and pork prices rise, it could be a benefit to the beef industry. The gap between the sources of meat proteins could see the shift in demand favorable towards the beef industry.