Bovine MBM prices traded higher in and out of Australia. Supply remains tight, with production continuing to run at a reduced pace. Cattle slaughter was estimated by the MLA at 105,794, down 28 percent from year-prior levels. JBS Dinmore appears to be poised to restart production in the near term, albeit sans a night shift. Restocking after years of intense cattle slaughter driven by significant beef demand and poor pasturing conditions is likely to keep production tight in the near term. COVID disruptions also pose a threat to output as the market moves into October. The market in New Zealand is similar to Australia; higher prices on tight supplies. In terms of US dollars, prices have moved even higher with the NZD up by 3 percent versus the greenback.

The domestic US market has been quiet coming off a long holiday weekend. Most sellers lined up two weeks’ worth of business last week and have focused on logistics and Q4 planning this week. The fundamentals suggest protein…