Global meat market: continued pressure from China to pay less

Faxcarne | The position of Chinese importers did not change substantially during the last week and the pressure to continue lowering purchase prices was sustained, at a time when the number of operations is usually reduced. “Importers are playing a tug-of-war with Brazil, with the weakness of the real, and with cattle at US$ 3.40,” said an intermediary. The business references for this week place a front 8 cuts on a US$ per ton axis of 4,700-4,800 and the wheel between US$ per ton between 5,400-5,500. “It is very difficult to validate these values. In our case, we are already sold at prices much higher than the end of January. We will wait a few more weeks before taking a position,” said a Brazilian exporter. The Brazilian currency seems unable to find its floor; this Tuesday the dollar reached 6.16 reals (+1.2%), a historical nominal maximum. In the year, the dollar rises almost 30% versus the real. A Uruguayan exporter said that there is “very little interest” from China and ...