“We all dance to the rhythm of Brazil, which is the one that has the price negotiation with China in its hands,” Fausto Brighenti, trader, partner and Director of Shanghai Ideal Trading, said from SIAL Paris.
The operator pointed out that Brazil is firm in not lowering its 8-cut striker below US,100/ton and that is what sets a floor for the rest of the exporters. “That value was down a few months ago and with the rise in property prices in Brazil, Brazilians are very focused on that,” he told Tiempo de Cambio on Rural radio.
Regarding the European market, Marcelo Secco, manager of Marfrig Uruguay, said that it shows a logical oscillation, and that the biggest concern continues to be the quota and license systems. “We would like both them and us to deregulate as much as possible to be able to enter with 481, which today would be out of quota at values that are not attractive for the business,” he said from the SIAL fair, interviewed by the same program.
“There is no explosive chance that meat could be missing. Prices have eased a little. The market is good, there are no major threats, I do see that there is a nice job opportunity in the future if, above all, we can work on deregulations,” he remarked.
The US remains traction, said Secco, although it is perceived that “it is very difficult for the US to continue transferring prices and sustain an export market.”
Brighenti highlighted the production problems faced by that country and the opportunities it can generate for its suppliers. “Next year this will be sustained and that will be very good. We will take advantage of it from South America,” he said.
