As sales to China continue to slow sharply, some Brazilian exporters are finding selective opportunities in Russia, although the broader international market remains very quiet.
“Markets are extremely slow. We are no longer doing any business with China,” a Brazilian exporter said. The source reported recent sales to Russia at US$/t 6,200 CFR for chuck & blade and US$/t 7,000-7,200 CFR for eye round, transactions that help diversify destinations at a time of reduced trading activity.
Despite export challenges, Brazil’s domestic market remains the main support for the industry. Bone-in beef continues to enjoy solid demand, while boneless beef is also moving at a good pace, factors that have helped sustain cattle prices.
However, the exporter cautioned that there is uncertainty about the domestic market’s ability to maintain that momentum in the coming weeks.
“People are saying that from next week onward there is less certainty that the market will remain as strong as it is today,” he said.
This comes as the Brazilian real has strengthened recently, supported by an improvement in the geopolitical outlook following the cessation of hostilities in the Middle East, a factor that also affects export competitiveness and cattle prices.
According to the source, there is some movement within the industry to try to pressure cattle prices lower. “This week will be important to see whether anything can be achieved and what signal it sends for the coming weeks,” he concluded.
