China holds prices steady after Sial amid cautious demand

Following the close of another edition of Sial Shanghai, Brazil's trade flow with China maintained a certain “fluidity” with “firm demand,” said a Brazilian trader to the World Beef Report (WBR). “Today the market is relatively stable. I don't see any drive or motivation to raise prices,” the source commented. Reference prices for forequarters held around US$/t 5,600–5,650 CFR, according to one broker, although an exporter claimed to have sold at up to US$/t 5,800 during the fair and rib at US$/t 6,500 CFR.

A trader working with Uruguay said the market “remained dead” after Sial. “We haven’t even received price inquiries,” the operator told WBR.

Meanwhile, Argentine market sources reported cow six-cut deals ranging from US$/t 5,350–5,500 CFR, brisket bones at US$/t 1,750, neck at US$ 2,100, and chuck at US$ 1,800.

Chilean sources offered a more optimistic take on China’s outlook after the fair. One exporter told WBR that “demand remained relatively stable,” and that new players appeared in the market with inquiries. “That’s interesting, though caution still dominates when it comes to making purchases,” he noted. The source quoted cow quarters at US$/t 4,600–4,650 CFR.

According to the weekly report from OIG+X, trading volume rose during Sial compared to the previous week, and some cuts fetched relatively higher prices. However, prices for most products remained similar to pre-Sial levels. OIG+X also noted that some Brazilian exporters “already had shipments scheduled through July, suggesting little expectation of significant price swings over the next two to three weeks.”