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06

2023

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03

The Chinese Market Reacted Cautiously After the Suspension of Brazilian Beef

Source:

OIG+X

Brazil self-suspended beef exports to China after confirming the case of BSE. A trader said that since last Fri, the price of beef in China's imported wholesale market has dropped. It’s believed that Brazil will resume exports in the short term.

 

Brazil self-suspended beef exports to China after confirming the case of BSE. A trader said that since last Fri, the price of beef in China's imported wholesale market has dropped. It’s believed that Brazil will resume exports in the short term.

 

The suspension of Brazilian beef may pose a challenge to the stability of market supply. And China’s spot market price may increase rapidly, but considering that the current demand is still low, it's difficult for Chinese buyers to accept high prices.

 

The current price quoted by Argentine beef six-cut exceeds US $5,500/kg, but the acceptable price for Chinese importers is US $5,200-5,300/kg. The Chinese market has also resumed strong demand for mutton. The transaction price of Uruguayan sheep carcasses under 24kg is US $5,050-5,100/kg.

 

In addition, the case of mad cow disease in Brazil also lowered the price of live cattle in MERCOSUR

After four weeks of gains this week, the price index of cattle in MERCOSUR fell by $0.08 to $3.61/kg carcass weight this week.

 

After the impact of BSE in Brazil, the market has not yet been completely stable, but the price has shown a downward trend. The average price of major states in Brazil decreased by $0.10 to $3.20/kg truck weight.

 

In Argentina, from the first second week to the last week of this year, the price rose sharply by 38% and is now stable. The peso price remained unchanged this week, while the dollar price fell $0.90 to $4.32/kg carcass weight.

 

The price of cattle used for export in Uruguay is relatively low, and the price recover to $3.90-4.00/kg carcass weight.