“The industry is very pleased"

For Brazilian exporters, the Sial fair in Shanghai was generally positive, said Marcelo Albanell of trading company Sudambeef, who is based in São Paulo. He said Brazil came to the fair “with the intention to sell, and sales were made at positive prices — US$ 5,600 to 5,800 for the 8-cut forequarter set — which were above the price floor that had been set.”

Albanell added that there had been speculation prices might fall, as some exporters were short on sales, but in the end, the market performed well. “The industry is very pleased” with the fair’s outcome, he summarized.

According to Albanell, demand was mainly focused on forequarters, while butt cuts were somewhat softer.

Brazilian exports are currently benefiting from very low cattle prices for slaughter — which have dropped in recent weeks — and a favorable exchange rate that makes exports more competitive.

Albanell said the extra supply left on the market due to reduced Brazilian beef shipments to the U.S. in recent weeks has had little impact. “It might have more effect in other markets, like Arab countries or Chile.” China, he added, remains the main destination and will continue to take a significant share of Brazilian exports.

Asked about the potential impact of avian influenza in Brazil — which has closed international poultry markets and increased domestic chicken supply — Albanell said there’s speculation this could put downward pressure on domestic beef prices.