Strong US Dollar impacting beef trade – Rabobank
Global economic conditions, such as the appreciation of the US dollar and the depreciation of the Yuan, are having an impact on beef trade, Rabobank said.
A strong US Dollar has led to a reduction in US exports and support for US imports, while a weakening Chinese economy and devaluation of the Yuan are curbing beef prices in China, it said.
It also said that the devaluation of the Brazilian Real is expected to support Brazilian exports in the coming months.
Angus Gidley-Baird, Senior Animal Protein Analyst at Rabobank, said that with little change expected in major beef-trading economies in the coming quarter, other than a possibility of the US FOMC raising interest rates, a strong US currency is expected to continue to affect global beef trade.
The beef quarterly report found that New Zealand and Australia beef exports to the US are set to reach their quota limits in the fourth quarter (Q4).
New Zealand and Australia exports to the US are reaching quota limits, which – combined with the availability of supply in the US – will result in some short-term softening in the Australian and New Zealand markets, Rabobank said.
Rabobank said that there has been little progress in trade developments in the quarter.
Australia is still awaiting parliamentary processes to enact the China FTA, Brazil is still progressing towards a trade protocol with the US, and the Trans Pacific Partnership (TTP) remains in negotiation, it said.
Russia has also extended its ban on agricultural products from the EU, the US, Canada, Norway and Australia by another year.