Beef exports from Australia and New Zealand to the U.S. are on pace to reach their quota limits in the fourth quarter of this year and, when combined with the supply in the U.S., markets in Oceania could see short-term softening, according to the latest industry quarterly report issued by Rabobank.

 

The economic slowdown in China and the weakening of the yuan are capping beef prices in China, and the falling real in Brazil is expected to support increased exports in the coming months. Meanwhile, the strong dollar has resulted in a contraction of U.S. beef exports and a boost to U.S. imports.

 

“With little change expected in major beef-trading economies in the coming quarter, other than a possibility of the U.S. FOMC raising interest rates, a strong U.S. currency is expected to continue to affect global beef trade,” according to Angus Gidley-Baird, Senior Animal Protein Analyst at Rabobank.

 

Overall, the third quarter has been a quiet period for the global beef sector. Australia is still awaiting the conclusion of parliamentary processes that will enact the recently forged free trade agreement between that country and China, while negotiations regarding the finalization of the Trans Pacific Partnership (TPP) remain ongoing. Brazil and the U.S. are still making advances toward a common trade protocol, and Russia has extended its ban on the importation of agricultural products from the EU, the U.S., Canada, Norway, and Australia by another year.