US market stalled due to Brazil situation

The tone of the US import market remained unchanged. “Everything is still on hold, waiting to see what will actually happen with the tariffs on Brazil,” a trader operating in that market told WBR.

Another operator added that the “big problem” generated by the Trump era is that his announcements are made through his social media platform, Truth, but “then there’s no executive order, so no one knows what to do.” Still, some importers — who in recent months had turned to Brazil — are now inquiring about resuming business with Australia. On the other hand, some suppliers with short transit times, such as Mexico or Nicaragua, are currently shipping as much as possible to the US to arrive before August 1, according to the source.

There are also reports within the US suggesting that a “rally like never seen before” in beef prices is coming soon, because in recent months various agents have been focused on resolving logistical issues and holding off on deals, waiting for more certainty about Trump’s tariffs. “What they’re telling you is that beef consumption in the United States hasn’t stopped,” one informant said. For example, domestic fatty trimming (50 CL) is currently priced at US$/lb 2.45-2.50. “That product has always traded at less than US$/lb 1,” the source recalled. In his view, logic suggests that prices for leaner trimmings (90-95 CL) will rise.

However, a US market analyst was more cautious. Although he considered that prices for lean beef, round cuts, and chuck “should remain attractive,” overall there could be “a price correction from now until September.”