Reduced supply and Hilton chilled prices stabilizing

Deals for Hilton rump & loin cuts halted the downward trend seen over the previous five weeks. Last week showed “stronger firmness” in prices, particularly due to the stance of Argentine exporters who resisted going below US$ 16,500–16,800/t FOB, according to two importers speaking with WBR. Some recognized brands were already positioned at US$ 17,000/t as of Tuesday.

Argentine supply reportedly declined last week due to slower kosher chilled beef business with Israel amid the conflict with Iran and reduced availability of quality animals for slaughter.

From Uruguay, a trader reported deals at US$ 15,500/t FOB last week, while an importer mentioned a ceiling of US$ 16,000/t FOB for the best brands.

“I think the market will adjust a bit more and may drop another notch. Prices in Europe are falling,” projected one importer. Nevertheless, the meat shortage continues to drive deals for 90 VL forequarters at around US$ 5,200/t CFR from Brazil, Uruguay, Paraguay, and Argentina. “Today, that price is fairly aligned with the US and China,” he acknowledged.

There were also deals from Brazil for topside at US$ 8,000–8,200/t CFR, eye round at US$ 7,000, knuckle at US$ 6,300–6,400, and for chilled cuts: striploins at US$ 8,500 and tenderloins between US$ 18,000–19,000 CFR, depending on weight.

Asked about deals for the new 481 quota window, one operator said reference prices for Argentina are around US$ 10,500–11,000/t FOB, while Uruguay is around US$ 11,300–11,400 for the most common set of cuts.