Some importers attempt to pause China’s price recovery

The recovery in selling prices to China saw “some pause” at the beginning of this week. Two Brazilian exporters told WBR that the US$/t 6,000 CFR previously negotiated for the forequarter in 8 cuts up until the end of last week was no longer being confirmed.

Some importers appear to be holding back. One packer said the highest counteroffers they were receiving were around US$/t 5,800 CFR, while another believed that top brands might secure around US$/t 100 more. “Business has slowed down over the past week due to high domestic beef prices (in Brazil); it's not easy to get better prices in China right now. Appetite is lower,” said an industry source.

While some spot deals were reported for round cuts—such as flat at US$/t 6,700 and eye round at US$/t 6,900—the source noted that for knuckle and topside, the domestic market in Brazil “is a better option.” Another Brazilian exporter closed a deal for fat-covered flat at US$/t 6,200 CFR.

In Uruguay, price negotiations continue, with deals for shin & shank reported in the US$ 5,700–5,900 CFR range. One industry source also reported sales of bone-in navel plate at US$/t 3,200 CFR and bone-in brisket at US$/t 3,100. For rib plate 5+4+4 ribs, the source received bids at US$/t 3,800 CFR but did not close.

Meanwhile, from Argentina, a more optimistic view emerged at the start of the week, with more inquiries and slight price increases of US$/t 50–100. Deals for cow 6-cut sets were closed at US$/t 5,600 CFR, while other sources quoted US$/t 5,400–5,500. Another regional broker reported trades for shin & shank at US$/t 5,700–5,800 CFR and trimming 80 VL at US$ 4,100 CFR. “It’s clear that supply from Argentina and Uruguay is more limited,” said a trader.

From Chile, business was reported for bone-in cow quarters at US$/t 4,700–4,750 CFR.

According to OIG+X, the market showed a general upward trend for the second consecutive week, with price increases ranging from US$/t 100–200. “Most Brazilian and Argentine products registered increases, while those from Uruguay remained relatively stable,” it said.

In terms of trade activity, Brazilian-origin products showed a slight increase in volume compared to the previous week, while volumes from other countries remained unchanged. Shipments are mainly scheduled for July and August, although some orders for September have already been registered.

In Taiwan, a broker reported deals for shin & shank from Paraguay at US$/t 6,000 CFR.