Beef: Chinese embargo expected to last another 20 days

On October 4th, Brazil completed a whole month of being banned from exporting beef to China, after two atypical cases of “mad cow disease” were registered in Brazilian territory.

So far, there is no official projection of when China will resume beef imports. However, for the economics professor at the Federal University of São Paulo (USP), Celso Grisi, Chinese stocks may soon reach their minimum level.

“There is a recession in China’s economy right now. A drop in growth implies a drop in demand and Chinese stocks are expected to last a few more days. I believe that in just over 20 days the Asian country should respond and resume beef exports,” predicts Grisi.

Also according to him, the suspension of purchases works as a market strategy, a fact that harms Brazilian cattle raisers.

“As long as we do not resume sales, there will be a drop in the price of cattle and this affects the cattle-raiser, who has been having additional costs, such as confinement. The greater China’s silence, the greater the drop in prices; this will benefit the Chinese, who will buy cheaper. I think cattle-raising will be unprofitable this month”, he points out.

Source: Rural Channel

To read the full original article, visit the link:

https://www.canalrural.com.br/noticias/carne-bovina-embargo-chines-deve-durar-mais-20-dias-preve-grisi/

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