Fresh drop for chilled and frozen beef in Europe

With “a bit more supply from Argentina” and a European market struggling to “pass on” recent price gains to consumers, rump & loin Hilton prices corrected downward last week. Import and export sources cited prices in the US$/t 17,000–17,500 FOB range for Argentine Hilton. In Uruguay’s case, while Europe sought to pay US$/t 16,000–16,200 FOB, most of the industry positioned at US$/t 16,500 FOB last week, said a trader.

One broker noted the “values had hit a ceiling,” making a correction natural. Regarding frozen beef, the source said Italy had imported a large share of GATT quota in March and April, ahead of the July 1 quota opening. The source cited deals for topside from Brazil at US$/t 8,700 CFR, eye round at US$ 7,000, knuckle at US$ 6,500, and rib eye and striploin at US$ 9,500. For chilled beef, Brazilian tenderloins were still trading at US$/t 19,000–20,000 CFR, though new deals might close at lower prices.

Despite the current dip, the informant said the beef shortage in Europe would persist, and while South American prices may drop slightly in the coming weeks, “European consumers will continue facing high prices.”

Another source reported “large volume” sales of 90 VL robbed forequarters from Uruguay and Brazil at US$/t 5,400 CFR. This beef is used by European processors to make items such as hamburgers.