Australia's processor cow indicator has reached a record high price as the United States ramps up imports of lean beef.

Meat and Livestock Australia's (MLA) national processor cow indicator has gone beyond 390 cents a kilogram for the first time and is up nearly 100 cents a kilogram on this time last year (an increase of 32 per cent).

MLA's global supply analyst Tim Jackson said the cow market was running hot because the world was facing tight supplies of lean beef.

"Around the world a lot of countries are short in terms of production of lean beef," he said.

"American cow slaughter has been falling for quite some time and in the first half of this year was down 10 per cent year on year."

At the Wodonga saleyards on Tuesday, bidding for heavy cows was "keenly contested" and reached up

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