Uncertainty over the future access of Brazilian beef to the European market continues to shape importers' purchasing decisions. A European source told WBR that some frozen beef business has already been concluded, although doubts remain about product availability for August shipments.
"We have to buy for August, but we still don't have certainty. Production for that month remains questionable," the importer said. He added that although prices have remained relatively stable, the market already assumes that Brazil's role in Europe will change once the new sanitary requirements come into force on September 3.
The source also said Brazil is expected to see a larger supply of cattle as feedlot animals come to market, potentially creating excess supply and putting downward pressure on cattle prices in several regions over the coming weeks.
A Brazilian exporter agreed that the European market has seen little commercial activity and that publication of the new sanitary protocol has not removed uncertainty about the future. "We believe Brazil will need a long time to adapt to the new regulations," he warned. Some market participants believe Brazilian exports to the EU will not return to their usual volumes for another two years.
