Brazilian corned beef producers are facing further raw material increases as farmers withhold cattle from markets.

Prices have risen 10% over the last two months and sources in Sao Paulo forecast they will go higher. Farmers have been hit by a weakness in domestic demand so are cutting back supplies, hoping to get better returns.

This latest move coincides with a cutback in export processing in a similar attempt to raise fob prices for corned beef and stewed steak.

Canners are losing money on longstanding contracts with US buyers and UK importers. With the approach of seasonal activity on hot meats, some slots may have to be put back.

Price for 24x340g (continental grade) are $15.50 per case fob, a rise of 29%. Some for-ex traders are talking a firmer US dollar over the coming months.