China Meat Demand Continues to Consolidate
Although the Chinese authorities continue to report cases of COVID-19 and close districts to prevent the virus spread, the imported beef market seems to consolidate its recovery, which began a couple of weeks ago with greater demand.
According to a trader, the Chinese market “is more active”, with meat sales of Uruguayan beef at higher prices. The prices per ton at the CFR Chinese port of shin & shank reach USD 8.2K, round cuts USD 7.3K, rib plate USD 5.3K, forequarters at USD 5.5K, and trimmings 80 VL at USD 4.8K.
Argentinian beef sales prices per ton reach USD 6.2-6.3K for cows in 6 cuts, and shin & shank reach USD 7.8K. Chilean beef sales reached USD 5.5-5.55K for cows and USD 5.6-5.65K for steers, with a higher value for high-quality meat from Hereford animals.
The Export Volume of Uruguayan Beef in July is Reported as the Lowest Monthly Value Since 2020
Uruguay exported 24,863 tons of beef in July 2022, the lowest monthly volume since August 2020. Exports decreased due to low supply since the cattle slaughter dropped due to cold weather. Despite the supply decrease, the FOB value fell 1.2% MoM.
China continues to be the top export destination despite the export volume dropping in July. About 65% of Uruguayan beef exports were sent to China in July, but the market share China held in January reached 76% and 72% in March.
Chinese Demand for Latin American Beef Increased in W31
During W31, Chinese demand for Latin American beef increased. The CFR price for Uruguayan shin & shank reached USD 8.4K/ton and for a full set USD 6.2K/ton. The CFR price for Argentinian beef reached USD 6.2K/ton CFR for 6 cuts, USD 8.2-8.3K/ton for shin & shank, USD 7-7.1K/ton for round cuts, and USD 5K/ton for trimming 80VL. Chilean traders also indicate their prices are high as bone-in beef quarters stands at USD 5.4-5.5K/ton.
Intense Mercosur Beef Exports to China in July
Beef exports from Mercosur countries to China continued to be high in July. Argentina exported a similar volume to previous months, around 46K tons. Brazil exported a higher volume in July, reaching 110K tons and Uruguay's exports dropped to 16K tons. These exports will arrive at their final destination in the second half of August or the first half of September.
Uruguayan Sheep Meet Exported to China
During W33, Uruguay increased its sheep meat exports to China. However, there is a significant gap between the price exporters ask for, and the price buyers offer. Uruguayan slaughterhouses price lamb carcasses from 9 to 24 kg over USD 5.7K/ton CFR, while buyers offer USD 5K/ton CFR. Producers expect that in September, the high demand for sheep will push buyers to offer higher.
Uruguay’s Meat Exports Rise by 36% YoY
So far in 2022, Uruguayan meat exports reached an export value of USD 2.07B, representing a 36% rise from the USD 1.52B in the same period in 2021. This year, the export volume has reached 428K tons at an average price of USD 4.8K/ton, representing a 10% increase from the 390K tons exported in 2021.
Lower Prices of South American Beef in W33
South American beef shows lower prices on W33. The Argentinian shin and shank prices in W33 were lower than in the previous two weeks reaching USD 8K/ton CFR and the cow in 6 cuts at USD 6.1K/ton. Uruguay also faced lower beef prices since some suppliers accepted lower prices of up to USD 200 less per ton.
Uruguayan Meat Prices Drop in W34 Due to Lower Demand From China
Uruguay hopes the beef import market in China stabilizes since imports have decreased due to the COVID-19 lockdowns. In W35, Uruguayan beef prices saw a downward trend, with CFR prices reaching USD 8K/ton, representing a decrease from the previous weeks when the price stood at USD 8.5K/ton. The demand in China is forecasted to remain low as the devaluation of the Yuan against the dollar makes the product more expensive.