Meat


There are more gloomy forecasts from Brazilian beef producers as the local currency continues to strengthen against a weak US dollar. Brazil sells its products in US dollars and has been getting fewer Brazilian reals for them as the rate drops. Much of the currency problem is reflected in the cattle futures market. June quotes are for R$55.79 per arroba, rising to R$61.50 in October. Canners are increasing dollar quotes month by month, which is bad news for UK traders because the rises have more than cancelled out the sterling/dollar advantage. Higher corned beef prices are therefore inevitable

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