Brazilian beef prices for US drop sharply after tariff removal

Offer prices for Brazilian beef in the US market fell sharply at the start of the tariff-free import period. According to Platts, the price of 90CL lean beef on an FCA East Coast basis dropped by 25 cents/lb to $3.03/lb on September 1, also down 25 cents from both a week and a month earlier.

Brazilian suppliers have become among the most competitive in the US market. Brazil-origin beef was offered at around $3.04/lb for deliveries in September, October, November and early December. Market participants attributed the decline primarily to the removal of import tariffs, which has significantly improved margins for Brazilian exporters.

Meanwhile, 90CL beef on a CIF East Coast basis remained at $3.23/lb, although it was 2 cents lower than a month earlier. Australia and New Zealand account for most offers in this segment, where elevated cattle costs continue to support export prices.

Lower domestic supply in the US is also creating additional opportunities for imports. US cow and bull slaughter, the main source of lean beef for processing, totaled an estimated 3.441 mln head through August 29, down 4.7% year on year and 15.9% from the same period in 2024.

However, market participants remain cautious about new deals due to uncertainty over import terms for Brazilian and Paraguayan beef. USDA and the Office of the US Trade Representative have yet to clarify the benchmark price and enforcement mechanism for the required 25% discount to the prevailing import price for lean beef.

Tags: beef meat, Brazil, Beef, Beef cattle, USA