The possibility that the Trump administration could eliminate or relax tariffs on imported beef continues to create uncertainty among buyers, despite the absence of any concrete measures so far.
“Importers do not want to commit to too many forward shipments,” a trader told WBR. This caution is translating into spot purchases and slower activity, particularly for South American beef, which is also competing against product already available in the US market.
However, the source argued that market fundamentals remain solid. Domestic 90CL prices continue near record highs, while 50CL values also remain historically elevated. In his view, the structural shortage of beef in the United States has not disappeared and continues to support the market.
The trader also pointed to a clear segmentation in demand. Some end-users continue to buy exclusively Australian or New Zealand beef regardless of the price difference versus South American product, particularly due to concerns over future availability of manufacturing beef supplies.
According to the source, some customers continue paying substantial premiums for Australian and New Zealand beef — around US$/t 1,000— above South American product. Australia is currently closing business at US$/t 7,800 CIF for 90VL, US$/t 8,500 for 95CL, and US$/t 8,000 for 85CL.
On the other hand, a broker said prices have begun to soften as additional volume and supply from Brazil enter the market. In cuts, for example, there was a noticeable increase in Australian offerings during the past week as a result of the “China quota effect.”
