EU to Increase Beef Imports From U.S.
On Thursday, Nov. 28 European Union lawmakers approved an increase in U.S. beef imports.
The approval grants the U.S. a larger share of an existing 45,000 tonne import quota from 2020.
The agreement on beef is designed to settle a dispute that dates back to 1981 when the EU banned the use of growth hormones in meat across the 28-nation bloc, including in imports.
The EU and the U.S. settled a trade agreement in 2009 that allowed a quota for hormone-free beef imports, which currently stands at 45,000 tonnes.
FBN’s Take On What It Means: We believe that the EU’s increasing the US’s share of the region’s annual beef import quota is a positive development for the US farmer. Simply put, we believe that increased beef demanded by the EU has the ability to help support cattle prices and the demand for cattle. The greater the demand for cattle by the feedlots, the greater the demand for corn and DDGs.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)
