As what many have expected, Rabbobank is calling for global beef supplies to remain tight through 2015. In its quarterly outlook for the first quarter of 2015, Rabbobank forecast renewed price strength and tight supplies in the first quarter of 2015. Food Business News reports an improving economy and a strong dollar have positioned the United States as a major influence on global beef market trends. Rabbobank’s Angus Gidley-Baird said “The U.S. continues to be the driver in the global beef market with constrained supply and strong demand keeping prices high.” Baird said Rabbobank is keeping a close eye on the price of oil and the Russian Ruble given Russia’s status as the world’s largest beef importer
The gap between premium and ground beef markets will continue to widen. Prices for prime beef will remain high in 2015, while lackluster demand and growing supplies of dairy-based beef will pressure prices for ground beef. Strong international demand for beef from Brazil and New Zealand will likely carryover into 2015 while, in China, retail prices for beef are expected to remain stable. Meanwhile, Australia continues to report record cattle slaughter Rabobank said the new year will be critical for Canada, as the beef industry decides whether it starts herd rebuilding or continues to downsize the industry. In Mexico, low availability of cattle is partially offset by increased cattle weights.