The European market for Hilton rump & loin cuts has shown somewhat firmer pricing over the past two weeks, supported mainly by reduced Argentine supply. According to one importer, current indications are around US$/t 18,500-19,000 FOB for Uruguay and US$/t 19,500-20,000 FOB for Argentina. “There is less Argentine supply and that is helping support prices,” he said.
Exporters also reported business at similar levels. One trader indicated sales of Uruguayan Angus rump & loin at US$/t 19,300 FOB. The same exporter also reported frozen beef sales, including striploins at US$/t 12,000 FOB and tenderloins at US$/t 21,000-22,000 FOB.
Meanwhile, the potential European ban on Brazilian beef imports from September 3 continues to generate concern among exporters and importers. A Brazilian exporter told World Beef Report (WBR) that although Europe is not a key market for Brazil in terms of volume, it plays an important role in international price formation.
“Europe is always a reference market for others and pays good prices for cuts that many other destinations do not buy,” he explained.
The source said there is concern among both Brazilian exporters and European importers, particularly in sectors that depend on Brazilian raw material, such as bresaola manufacturers in Italy.
According to the exporter, Brazil will attempt to address the issue during political meetings scheduled this week at the G7, including high-level discussions with European authorities. However, he believes the matter is unlikely to be resolved without concrete sanitary guarantees.
“If Brazil cannot provide a sanitary guarantee, it will not be resolved,” he said.
He also does not see strong interest among importers in building inventories ahead of September. The market still remembers what happened with the postponement of the EUDR regulation. At that time, many operators purchased product in advance expecting restrictions that never materialized, leading to falling prices and financial losses.
“I do not see the same level of interest that existed at the end of last year,” the exporter said, adding that the market will likely have to live with this uncertainty for the coming months.
