The imbalance in the global beef market in favor of demand

Published Aug 4, 2024

Tridge summary

The international beef market is experiencing a year of challenges, including economic issues in China, the world's main importer, and high export balances from Brazil and Australia, leading to low product prices. Despite expectations of a decline in Chinese beef demand, it has Surprisingly increased, with the US Department of Agriculture projecting record imports. The surplus from major suppliers like Brazil, Argentina, and Australia finds a demand from the US and China, despite concerns of declining export balances and high prices in the US. The sustainability of these market conditions and the influence of the Chinese economy on demand and prices in 2025 are key concerns.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The international beef market is going through a complicated year. To the economic difficulties of China, the main world importer of the product, are added high export balances of two of the three main world exporters, Brazil and Australia, so there is an imbalance in favor of demand that keeps downward pressure product prices. But the conditions are in place so that next year this situation will begin to leave room for a new balance, with international demand that will find greater difficulties in obtaining merchandise at low prices. Expectations for this year, in principle, were for a moderation in Chinese demand for beef, leaving behind almost a decade of uninterrupted growth. However, the reality is being different: China continues to buy increasing volumes of the product, although importers are putting downward pressure on prices, with relative success thanks to the enormous exportable balance, fundamentally - but not only - from Brazil. Based on this, after the first half of ...

Source: Agromeat