Platts assessed the Brazil Beef Marker FCA Santos at $4,375/mt May 9, unchanged from the previous assessment. Market participants reported that trading activity for China has been slow amid low bid levels and exporters seeking more profitable markets.
Chinese-based buyers have returned to the market throughout the week after the Labor Day holidays, but negotiations have been still postponed due to current price conditions, according to a source.
Traders reported that they may resume new negotiations once prices increase, but values are not likely to rise in the near term.
“The Chinese demand is still active, but they are willing to pay less per beef ton," a participant added.
In April, Brazilian beef exports to China hit a record high, totaling 101,023 mt, according to consolidated export data by the Brazilian Foreign Trade Agency (Secex). That represented a 24% increase from the previous month, while the accumulated for January-April was 41% higher from the same period last year.
On the other hand, the price paid by Chinese buyers for Brazilian beef in April decreased 12% on the year to $4,494/mt, according to Secex data. So far in 2024, however, beef export values have increased 2%, possibly indicating that prices have already reached their bottom, according to participants.
The arbitrage between lean beef producer-exporters Australia and Brazil and US, a major importer, has stabilized recently amid balanced supply and demand.
The spread between 90CL beef FCA Brisbane and delivered US East Coast has averaged $75/mt or 3 cents/lb in May, which is narrower than the 12 cents/lb shipping cost between the two regions. However, US importers have largely paused beef buying because they will have already bought beef for upcoming US holidays.
“There’s not a lot of procurement stuff going on right now,” a source said earlier this week.
Meanwhile, FCA Santos lean beef and the US East Coast is about $575/mt apart or about 25 cents/lb, Platts data show. It costs about 7 cents/lb to ship beef from Brazil to Philadelphia, the US largest port for beef imports.
In market news, the US exported 137,300 mt of beef in the seven day-period ending May 2, according to US Department of Agriculture statistics published May 9. That is a 13,800-mt decline, or 9%, from the same time one year ago.
Asia remains the top destination for muscle cuts from the US. South Korea, Japan, China, and Taiwan accounted for 71% of US beef exports in the most-recent week, essentially unchanged from one year ago.
Platts Protein: Chicken, Frozen Boneless breast: CIF Jebel Ali, Brazil for H1 June loading, Value at $3250/mt, 27mt
Platts Protein: Chicken, Frozen Boneless leg skin on: CFR Korea, Brazil for July loading, Value at $2000/mt, 25-27mt
Platts Protein: Beef, FFQ 8 cuts: CFR-China, Brazil for H1 June loading, Value at $4500/mt, 27mt
Platts Protein: Beef, FFQ 8 cuts: CFR-China, Brazil for H1 June loading, Bid at $4200/mt, 27mt
Platts Protein: Chicken, frozen breast, boneless, skinless value $3250/mt CIF Jebel Ali, Brazil for H1 June loading, 27mt FCL
Platts Protein: Beef, 90CL Australia: FCA Brisbane , 90CL Australia for July ship loading, Value at $6000-6200/mt, 25-27mt
Platts Protein: Beef, FFQ 8 cuts: CFR-China, Brazil for H1 June loading, Bid at $4400/mt, 27mt
Platts Protein: Beef, FFQ 8 cuts: CFR-China, Brazil for H1 June loading, Value at $4500/mt, 27mt
Platts Protein: Beef, Full FFQ-90VL: CFR-Egypt, Brazil for H1 June loading, Trade (Previous week) at $4100/mt, 27mt
Platts Protein: Beef, Full FFQ-90VL: CFR-Egypt, Brazil for H1 June loading, Offer at $4200/mt, 27mt
Platts Protein: Chicken, frozen breast, boneless, skinless value $3250/mt CIF Jebel Ali, Brazil for H1 June loading, 27mt FCL
Platts Protein: US BEEF: 50 fresh domestic heard talked +$0.75-$1/lb
Platts Protein: US BEEF: 95CL heard offer 90CL +$0.10-$0.15/lb
Platts Protein: US BEEF: 85CL heard talked 90CL -$0.07/lb
Platts Protein: US BEEF: 50 fresh domestic heard traded +$0.78/lb (previous week)
Platts Protein: US BEEF: 90CL CIF US heard talked +$2.75-$2.80/lb
Platts Protein: Chicken, Frozen Boneless leg skin on: CFR Korea, Brazil for June loading, Trade at $1950/mt, 23.5 mt
Platts Protein: Beef, FFQ 8 cuts: CFR-China, Brazil for H1 June loading, Offer at $4800/mt, 27mt
Platts Protein: Beef, FFQ 8 cuts: CFR-China, Brazil for H1 June loading, Bid at $4500/mt, 27mt
Platts Protein: Beef, Full FFQ-90VL: CFR-Egypt, Brazil for H1 June loading, Trade (Previous week) at $4200/mt, 27mt
Platts Protein: Chicken, Frozen Boneless leg skin on, 220-240g: CFR Japan, Brazil for July loading, Value at $2300/mt, 25-27mt
Platts Protein: Chicken, Frozen Boneless leg skin on, 260-280g: CFR Japan, Brazil for July loading, Value at $2500/mt, 25-27mt
Platts Protein: Chicken, Frozen Boneless leg skin on, 200-220g: CFR Japan, Brazil for July loading, Value at $2200/mt, 25-27mt
Platts Protein: Chicken, Frozen Boneless leg skin on, 240-260g: CFR Japan, Brazil for July loading, Value at $2400/mt, 25-27mt
Platts Protein: Chicken, Frozen Boneless leg skin on, > 200g: CFR Japan, Brazil for July loading, Value at $2100/mt, 25-27mt