The dry conditions in Australian cattle regions have continued into 2015. As a result, slaughter and export volumes remain high. This continues to offset some of the tight global cattle and beef supplies experienced in 2014 and forecast for 2015, Rabobank reported.
"Global beef supply continues to remain tight in Q1 2015, although Australian exports remain high as drought continues," said Rabobank animal protein analyst Angus Gidley-Baird.
"Continued liquidation of the cattle herd and possible improved seasons will lead to a reduction in Australia’s beef production through 2015."
However, Rabobank said these cattle conditions will not continue in Australia and global supplies are expected to remain tight.
Meanwhile, US prices experienced a high degree of volatility in the early part of 2015 as a result of many factors.
A slowing economy and lower pork and poultry prices are leading to a weak demand for beef, and Chinese retail beef prices have been stable entering 2015 rather than following their normal upward trend, Rabobank concluded.