China keeps pressure to lower prices, but some deals reflect SIAL values
The return of Chinese operators this Tuesday, after Monday’s Dragon Boat Festival holiday, did not bring significant changes in the importers’ attitude to push for lower buying prices. However, some deals closed at levels similar to those achieved during the recent SIAL fair, particularly from Brazil.
A regional trader told World Beef Report (WBR) that bids early this week were up to US$/t 500 below what many Uruguayan plants were asking for various items. The source reported bids from China for shin & shank at US$/t 5,500 CFR, knuckle 97VL at US$/t 6,200, flat at US$/t 6,300, eye round at US$ 6,600, and outside at US$ 6,000. Another Uruguayan plant reported bids for shin & shank at US$/t 5,200-5,400, flank bone-in at US$/t 3,100, and 5+4+4 rib plate at US$/t 3,800 CFR.
In Brazil’s case, a broker noted that although some importers last week offered US$/t 200-300 below SIAL levels, smaller-volume deals were closed at or slightly above fair prices. Plants have already sold June volumes and are now negotiating for July and August, seeking higher prices. Though some buyers offered US$/t 5,600 CFR or less for the 8-cut forequarter, transactions were closed last week at US$/t 5,700-5,800, butt at US$/t 6,500, rib plate at US$/t 4,500, striploin and rib eye at US$/t 6,500, and eye round at US$/t 6,800. "Comment is that China’s stocks are short, 2 or 3 months. We used to have 4 or 5 months of stocks," the source added.
In Argentina, a trader said demand remained “firm,” especially for 6-cut cow, holding around US$/t 5,400 CFR, and grainfed cuts. Another Argentine market source noted strongest demand was for trimming, shin & shank, and 6-cut cow. "Other items are harder to push," he said. He mentioned bone-in compensated quarters at US$/t 3,600 CFR, 6-cut cow at US$/t 5,200-5,300, 80VL trimming at US$/t 4,000-4,100, and butt at US$/t 6,600-6,700.
In Chile, sources said demand was more active this week, with “more inquiries.” Local industry aimed to sell cow quarters at US$/t 4,800 CFR, though some buyers capped their bids at US$/t 4,600-4,650.
