Current Cattle Markets Daily Headlines for January 5, 2021

americancattlemarkets

5 years ago

Brazil’s beef industry association forecasts exports up 6 percent in 2021

According to Brazil’s beef industry association Abiec, Brazilian beef exports are expected to reach 2.14 million metric tons in 2021, up 6 percent from 2.02 million metric tons in 2020.
Revenue from 2021 beef exports should reach $8.79 billion, up 3 percent from $8.53 billion in 2020.
Antonio Camardelli, president of Abiec, stated that these estimates for 2021 are conservative and considers lower export prices.
- Abeic forecasts the average export price for Brazilian beef in 2021 to be $4,104/metric ton, down from $4,224/metric ton in 2020.
  - This price decline takes into account for the foreign exchange rate and the issues that countries are still facing with Covid-19.
- Abeic expects Brazilian beef exports to expand in countries they already serve and to also break into new markets.
- Currently, 26 Brazilian beef processing plants are waiting to receive authorization to export to China, Brazil’s largest beef importer.
  - Brazil already has 35 beef processing units that are permitted to export to China.
- The country is also negotiating to export fresh beef to Japan, Mexico, South Korea and Canada.
  - These markets combined have the potential to import approximately 260,000 metric tons of Brazilian beef per year, equating to $1.5 billion in revenue for exporters.

The finished cattle market is influenced by many factors.
- One factor that needs to be considered is the number of cattle being shipped to Mexico.
Since the first week of July 2020, over 10,000 hd. of beef cattle for slaughter have been shipped to Mexico.
- This compares to only 134 hd. being shipped to Mexico during the first ten months of 2019.
These numbers seen in 2020 are some of the highest volumes of cattle shipped to Mexico for slaughter since the early 2000s.
Nationally speaking, the export of these cattle does not do a lot to influence the market, however it greatly impacts cattle feeders in South Texas where Brahman and Brahman influenced cattle are mainstays.
- Mexico has provided another outlet for these ear cattle that will not grade Choice or higher which adds value to those cattle.