Stability in beef sales to China
The Mercosur beef export market to China is operating with stability and relative fluidity. Regional supply is limited, particularly in the case of Uruguay and Argentina, which complicates deal-making. However, the transactions that are being closed are at prices equal to or slightly higher than those of the previous week.
“The past two weeks were good; current activity is mostly stable,” said a Chinese market operator. He added that shipping schedules are “still quite comfortable” for exporters, allowing them to avoid pressure on the market and to hold firm on price expectations. For Brazil’s eight forequarter cuts, the price tug-of-war remains between buying intentions around US$/t 5,800 and selling offers at US$/t 6,000–6,100. For round cuts, prices are holding steady at US$/t 6,800–6,900, with eye round quoted around US$/t 7,000.
A slight price improvement was observed in trimmings. Exporters from Argentina reported prices of US$/t 4,200 CFR, about US$ 100 higher than the previous week. For six-cut cow meat, prices ranged from US$ 5,600 to US$ 5,800 CFR.
Meanwhile, a trader reported several deals for Argentine grainfed cuts, with prices of US$/t 6,300 for chuck, US$/t 7,900 for oyster blade, boneless navel plate at US$/t 5,500, and boneless brisket at US$/t 4,800.
In Uruguay, the market remains mostly stable with relatively few operations due to reduced slaughter limiting product availability.
According to the OIG+X weekly report, China’s beef futures prices remained generally stable last week. After previous increases, prices leveled off for South American countries, There was a better performance in the case of trimmings 80 VL, with weekly increases of around US$/t 100, said the report. Market activity declined, with total transaction volume falling compared to the prior week. China’s terminal demand had yet to show signs of meaningful recovery. Coupled with relatively high futures procurement costs, most importers adopted a wait-and-see approach.
In the distribution market, prices remained stable, with modest increases of USD 70–140/ton seen in a few cuts. OIG+X affirms that “overall consumer demand was weak, and downstream buyers lacked motivation for restocking. Some end-users focused on digesting existing inventories, leading to delayed procurement plans and a noticeable decline in active orders”.
In the wholesale segment, “persistently sluggish terminal demand, downward pressure on selling prices, and ongoing cost-price inversions further dampened buyer confidence. As a result, most traders were cautious and less willing to place new orders, with purchasing behavior becoming increasingly conservative”.
