A trader told WBR that he does not expect the United States to replace China as the main destination for Brazilian beef. While part of the volume seeking to avoid the 55% safeguard tariff is being redirected to alternative markets, he believes many Brazilian plants will continue supplying China because they are not approved to export to the US or lack sufficient alternative outlets.
“It would be very unusual for the US to become Brazil’s main market in any given month. I think China will remain the largest destination by volume,” he said.
Even so, he acknowledged that July and August could see heavy Brazilian beef pressure in the US market, driven by the temporary window created by the Chinese quota system.
