Middle East and North Africa (MENA) markets continue to lack the capacity to absorb the volumes displaced from China.
A regional broker said it is becoming increasingly difficult to sell forequarters, with prices falling from US$5,500/t CFR some weeks ago to US$4,900-5,000/t CFR for Egypt.
The source added that there are virtually no new high-volume buyers for forequarters in traditional destinations such as Egypt, Morocco and other North African markets. Trade with Iran has also become more difficult due to the renewed conflict involving the United States.
According to the broker, the surplus of roughly 120,000 tonnes of Brazilian beef unable to enter China continues to weigh on the global market. "Processors are operating at half capacity. Their only alternative will be to reduce slaughter, at least until the fourth quarter, when production begins again for the new US and Chinese quotas," he estimated.
