Despite the trade war, prices remain firm in China

Import prices in China continued an upward trend despite the wave of pessimism on stock markets and economic outlooks brought on by Trump’s tariff effect. Sources in China’s import market reported to World Beef Report (WBR) that eight forequarter cuts from Brazil were trading at US$5,700/ton CFR, in a scenario where stocks of forequarter cuts remain high—though not so for butt cuts, which “are low,” according to the source. Meanwhile, one broker noted that some Brazilian plants were placing bids of US$6,000–6,100/ton for forequarter cuts. “There have already been a few spot deals closed at those levels,” another broker confirmed. For butt cuts, Brazilian plants are asking US$6,500/ton and US$7,000/ton for topside and eye round, respectively. “There aren’t many deals being done because cattle prices are rising. Here (in Brazil) people are already talking about R$350 per @. Plants are afraid that when it’s time to produce and ship, cattle will be even more expensive. And there’s also currency uncertainty,” the source added.