Market participants reported limited trading activity in the global beef market on May 17, reflecting falling prices for Brazilian beef origin paid by the Chinese market earlier on the week.
Platts assessed Brazil Beef Marker FCA Santos unchanged at $4,300/mt on May 17. No new trades were confirmed on the day.
Market sources said the new trade volumes confirmed at lower prices on the week were punctual, aiming to provide greater output flow and reduce reported high beef stocks. Brazil-based beef packers were decreasing the daily slaughter to extend their harvest schedule, rebalancing beef production to the current demand.
"Lower trade volumes with China may result in increased stocks, but other markets will help to absorb part of this production," a participant said.
A second source said the cattle harvest schedule is aligned to current demand, both international and domestic.
“Despite the heated demand from other markets, such as the US and [Middle East-North Africa] countries, the volumes traded are lower compared to China's demand,” the second source said.
According to a third market participant, heated buying interest from Middle East and North Africa countries has been providing better price conditions for Brazilian beef exports. The participant added that more favorable price conditions with Middle East and North African markets are likely to mitigate the negative impact of lower beef prices paid by China.
Platts assessed 90CL Beef CIF US at $5,952/mt or $2.65/lb, down $110/mt or 5 cents/lb, based on market feedback of FOB port-of-entry 90CL beef at $2.75/lb, which is typically about 10 cents/lb more than a CIF US value.
In market news, the US Department of Agriculture said the US exported 136,800 mt of beef in the seven-day period ending May 9. The total was 13,500 mt, or 9%, lower than exports from the same time one year ago and marks a continued downward trend in beef exports shown in data figures released throughout the year.
Asia -- specifically China, Japan, South Korea, Taiwan and Hong Kong -- remained the top-four destinations for US beef exports. Those four countries accounted for 72% of US beef exports in the most recent week of data.
Platts is part of S&P Global Commodity Insights.
Platts Protein: Beef, Full FFQ-90VL: CFR-Saudi Arabia, Brazil for H2 June loading, Trade (Previous week) at $4300/mt, 27mt
Platts Protein: Beef, Full FFQ-90VL: CFR-UAE, Brazil for H2 June loading, Trade (Previous week) at $4300/mt, 27mt
Platts Protein: Beef, Full FFQ-90VL: CFR-Algeria, Brazil for H2 June loading, Trade (Previous week) at $4500/mt, 27mt
Platts Protein: Beef, FFQ 8 cuts: CFR-China, Brazil for H2 June loading, Bid at $4100/mt, 27mt
Platts Protein: Beef, FFQ 8 cuts: CFR-China, Brazil for H2 June loading, Bid at $4200/mt, 27mt
Platts Protein: US BEEF: 85CL heard traded “basically the same price as” 90CL
Platts Protein: US BEEF: 95CL heard traded 90CL +$0.10-$0.12/lb
Platts Protein: US BEEF: 90CL FOB Philadelphia heard talked +$2.75/lb, Australia/New Zealand-origin
Platts Protein: US BEEF: 90CL Australia/New Zealand-origin heard traded +$0.12-$0.15/lb to Brazil-origin
Platts Protein: US BEEF: 90CL FOB Philadelphia heard offer +$2.80/lb, Australia/New Zealand-origin
Platts Protein: Beef, FFQ 8 cuts: FCA-Santos, Brazil for H1 June loading, Trade at $4300/mt, 27mt
Platts Protein: Beef, FFQ 8 cuts: CFR-China, Brazil for H1 June loading, Bid at $4100/mt, 27mt
Platts Protein: Beef, FFQ 8 cuts: CFR-China, Brazil for H1 June loading, Bid at $4200/mt, 27mt
Platts Protein: Beef, FFQ 8 cuts: CFR-China, Brazil for H1 June loading, Bid at $4250/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 Boneless leg skin on: CFR Japan, Thailand for May/June loading, Value at $2600-2800/mt, 23.5-27mt
Platts Protein: Chicken, Frozen Boneless leg skin on: CFR Japan, Thailand for May/June loading, Value at $2300/mt, 23.5-27mt
Platts Protein: Beef, Full FFQ-90VL: CFR-Saudi Arabia, Brazil for H1 June loading, Trade (Previous week) at $4300/mt, 27mt
Platts Protein: Beef, Full FFQ-90VL: CFR-Egypt, Brazil for H1 June loading, Trade (Previous week) at $4300/mt, 27mt
Platts Protein: Chicken, frozen breast, boneless, skinless value $3250/mt CIF Jebel Ali, Brazil for H1 June loading, 27mt FCL
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