The price of fattened cattle rises despite the issue with China looming

The physical market for fattened cattle presents yet another troubled day. The news of the day is that meetings are taking place in China with representatives of the Brazilian agribusiness due to the presence of Fluazuron (a tick growth inhibitor) above the permitted level in lots of beef exported to the Asian country. According to analyst Fernando Henrique Iglesias from consultancy Safras & Mercado, there is a possibility that Chinese purchases may retract in the very short term. “The futures market has priced this movement in a significant way. The market is also awaiting the result of the investigation being conducted by China, which may generate a negative effect on the export of beef.” According to him, in light of this environment, many slaughterhouses have stopped buying cattle. The wholesale market still faces firm prices throughout the week, and the business environment still suggests ...