China opened the week with a new attitude and stronger demand

Chinese importers showed a different attitude at the beginning of the week. Since Monday, the pace of inquiries and requests for offers “picked up significantly” and “accelerated even more” on Tuesday, according to a regional trader who spoke with World Beef Report (WBR). The trader reported deals from Uruguay for shin & shank at US$ 5,900/t CFR, around US$ 100/t higher than seven days ago. He also closed shipments of chuck & blade at US$ 5,400/t and boneless navel plate at US$ 4,100/t.

Along the same lines, an Argentine trader confirmed that the week was showing “very strong” and “active” demand from China. He reported deals for neck bone at US$ 2,150/t CFR, about US$ 300/t more than the previous week, and 80 VL trimming sales at US$ 4,100/t CFR.

A Brazilian trader considered that there was a “speculative” factor in the market, linked to the pending outcome of the investigation into the impact of imports on the Chinese cattle market, expected to be released in August. Brazilian exporters are holding out for deals on 8-cut forequarters at US$ 6,000/t CFR and round cuts at US$ 6,850/t. “I haven’t seen many deals at those levels. Buyers are still showing some caution,” he noted.

Meanwhile, a broker reported cow quarters from Chile at US$ 4,800/t last week, while 23-cut deals from Bolivia were closed at US$ 5,850/t CFR.

According to market analysis from OIG+X, the upward price trend “showed signs of slowing” last week, in line with the market view expressed by WBR sources in the previous edition. OIG+X added that only some Brazilian and Argentine products posted gains of around US$ 100/t, while Uruguayan product prices generally remained stable. In terms of trading activity, most importers adopted a more cautious stance, with a marked drop in inquiries and a trend toward postponing deliveries. A gap of about US$ 200/t persisted between the importers’ target prices and suppliers’ offers. “Most suppliers held firm on pricing and showed little willingness to make concessions, resulting in prolonged stagnation in negotiations. Business was mostly focused on July–August shipments, with some extending into August–September,” OIG+X noted.