Brazil: Domestic supply and demand should play a greater role in beef prices

Foreign sales of beef, in 2023, should continue to influence domestic values, but domestic demand and, above all, the tendency to recover supply in the field tend to be important foundations for price behavior. Since 2019, the performance of Brazilian beef exports has been a preponderant factor in the formation of prices in the national beef cattle chain. In the case of foreign sales, China should continue to be the main destination for Brazilian beef, but the recent positions of the Asian country in the face of combating new cases of covid-19 and efforts to recover pork production may weaken the intense pace of international purchases. In view of this, it is essential that the national export sector continues to strengthen relations with other important meat destinations. The high dollar also tends to keep foreign protein sales attractive. internal demand As for internal demand, the new political-economic scenario may increase – even if initially – the consumption of beef, in ...