Brazilian beef sector hoping for more 'liberal' import terms
The UK may be more flexible in importing beef from Brazil, said Fernando Sampaio, executive director at Abiec, Brazil's beef industry group.
"I believe the UK will be more liberal compared to the EU, and Brazil may be favoured by Brexit," he said. "But it's impossible to say how exports will behave because we still don't know how access market rules will change."
Restrictions to Brazil beef exports to EU include import taxes, quotas and sanitary barriers. Brazil beef exports to UK reached $154m last year, 20pc of total Brazil beef sales to EU.
However, the impact of Britain's vote to leave the European Union could hurt US exports, now facing the headwinds of a strengthening dollar. That's according to Joe Vaclavik of Standard Grain, who cautioned that there could be cancellations of US export contracts if the US dollar surges higher.
International grain traders are in 'wait and see' mode following the "knee-jerk reaction" last week, according to R&H Hall trader, James Nolan.
"Guys really don't know what to do, so it will take a few days for markets to digest what the result means," he said.
"Even though sterling weakened on Friday and English wheat should've been €5/t cheaper, sellers basically just increased their prices."