According to the latest quarterly beef report from Rabobank, the global beef market is expected to regain its positive momentum in the third quarter, once the current, temporarily high supply has worked through the system. This will likely support further strengthening of prices, as the supply of competing animal proteins tighten, the report says.
The main wildcards for the start of these positive developments are rainfall in Australia, and to a lesser extent, the continued drought in U.S. and Brazil, pushing more cattle through the system.
Indonesian import development during the July Ramadan festivities and Chinese imports toward the high season at the end of 2014 will also have unknown impacts. In addition, the relatively high prices might result in consumers trading down to pork and poultry.
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