The volume of imported beef held in cold storage in China edged lower in June from the previous month, ending a two-month trend of rising inventories.
According to OIG+X data shown in the accompanying chart, the imported beef inventory index eased by one point to 98. Imports from Brazil remained strong in June, as the product entered under the country's import quota. In Australia's case, its quota was fully utilized on June 18. Under the regulations, the 55% out-of-quota tariff takes effect on the third business day after the quota is filled, meaning it began to apply on June 20.
Imports from Brazil are expected to remain heavy in July, so inventories are likely to stay at elevated levels. However, stocks should begin to decline from August onward, once Brazilian exporters have exhausted their 1.106-million-ton quota.
