Beef cattle market (Baptiste Buczinski)
Welcome to our first Market Outlook! Once a month we will analyze a wealth of data from Global, Europe, Brazil, China and USA about cattle and beef market, ensuring you stay updated and informed. Feel free to SEE & share this valuable information.
No change in the market. Inflation rates remain high, beef prices are still under pressure except in the United States.
Inflation and hot weather in southern Europe are putting pressure on demand for beef and on European prices for finished cattle. Cattle herds continue to decrease.
According to data from Secex, Brazilian beef exports in the first semester of 2023 had the second-best performance in all times. Exports totaled around 883 000 tons (-5% /2022, which was a record, but +14% /2020, which, had the second-best result until then). Despite the Brazilian currency has become stronger over the last months, beef continued to be competitive in the international market. In June, the price paid for the Brazilian beef has decreased.
In June, Chinese prices for beef remained under pressure. Chinese government has decided to release the entry of Brazilian meat produced on February 21 and 22 (just before the confirmation of the isolated atypical case of BSE): around 40 000 tons of frozen beef suitable for human consumption.
Fed steer prices in the 5-area marketing region established a new record for in the middle of June. According to the USDA, in the first half of 2023, improving pasture conditions, relatively cheaper corn prices, and the prospect for higher fed cattle prices have fuelled feeder cattle sales. According to the USDA semi-annual Cattle report, there are some indications of producers’ intention for heifer retention and potential cow-herd expansion plans going into next year.