Chilled prices in Europe strengthen again

The European Hilton chilled market showed renewed firmness last week. Two import sources put rump and loin cuts from Argentina around US$/t 17,600–18,100 FOB; attempts to buy at US$/t 17,500 failed to find offers. Argentine market contacts also reported downward pressure from some players who argued that the first warm weather in Europe is slowing consumption, and the return of kosher slaughter should increase supply versus previous weeks. For Uruguay, a trader cited deals at US$/t 16,600–16,800 FOB.

A European importer said chilled prices “should logically ease” because most buying is already done, whereas the outlook for frozen is “less clear.” He noted that considerable volumes being loaded now will be customs cleared from 1 July onward because no GATT quota is currently available.

A Uruguayan industry source said European demand for forequarter blocks “cooled” last week: “It feels like prices have hit a ceiling.” One importer reported 90 VL at US$/t 5,200 CFR from Uruguay and Brazil for late May shipment, plus silverside from Brazil at US$/t 9,000–9,300 CFR and from Uruguay at US$/t 8,500. For eye round, Brazil closed at US$/t 6,700–7,000 and Uruguay at US$/t 7,700–8,000, while flat traded at US$/t 7,000. Brazilian tenderloins are being placed at US$/t 19,000–20,000 FOB but availability is scarce, as is that of rib eye and striploin, which hover around US$/t 9,500 FOB.