Beef Likely Will Rebound,Says Rabobank

According to the latest Rabobank report, Beef Quarterly Q2 2014, the global beef market will 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 supply of competing animal proteins tighten.

The main wildcards for the start of these positive developments are rainfall in Australia, and, to a lesser extent, the continued drought in the United States and Brazil pushing more cattle through the system.

Indonesian import development during the July Ramadan festivities and Chinese imports towards 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. S