Report 1630

As is usually the case, trading slowed during Easter week. Although prices in general stayed firm, and some cuts improved, operators were more cautious on Monday and Tuesday and submitted lower bids than in previous days. A regional broker said the market was “a bit calmer,” waiting to see what Brazil would do, because several plants there are sold out until the SIAL fair in Shanghai (19 21 May). “Several exporters aim not to offer again until the fair,” he added.

Hilton quota cuts firmed again this week. A weaker Argentine peso after exchange control liberalization and scarce steer supply pushed values to new highs for the year. Export sources reported rump & loin at US$ 17,500–18,500/t FOB for top brands.

Talks with Israel’s regional suppliers are under way, with the first special kosher teams expected early next month. An importer told WBR that some crews leave Israel next week, while most depart 4–5 May to start slaughter on 7–8 May.

A trader told WBR that buyers are finding it hard to absorb the new 10 % duty on beef already en route to US ports.

Import prices in Chile held steady last week: Brazil at US$ 6,100/t CFR for the 19 cut pack and Paraguay at US$ 6,300/t. “Purchases are very short because everyone expects higher prices for June–July shipments.

A regional trader said Uruguayan lamb supply remained low last week, but Middle East and North Africa demand improved.

Average slaughter cattle prices in the Mercosur countries topped US$ 4.00 per kg carcass weight for the first time since mid 2022, buoyed by a weaker US dollar and a firm international beef market.

The WBR Mercosur Steer Index gained 17 cents on the week to US$ 4.06/kg carcass weight, up 22 cents over the past two weeks.

Brazil’s average beef export value reached US$ 5,041/t in the third week of April, surpassing the US$ 5,000/t mark for the first time in 11 weeks (since the third week of January). This was the fifth consecutive weekly increase; since the second week of March the average export value has risen 3.7 %, mirroring the price rebound that began in mid February.

Despite very high beef output during the first quarter, market analysts continue to foresee a reversal of the cattle cycle in Brazil, which will push slaughter and production down over the coming months of 2025. Consultancy Agrifatto projects 2025 beef production at 10.12 million tons, 1% less than in 2024, reflecting a 0.9% drop in slaughter to 38.83 million head.

Several Brazilian meat plants will be inspected by the United States in May in what the Brazilian Beef Exporters Association (Abiec) describes as a routine technical mission. According to Abiec, the audit announced by USDA’s Food Safety and Inspection Service (FSIS) is part of the equivalence process between the two countries’ inspection systems.

JBS, the world’s largest meat processor, has taken another step toward securing the approvals needed for a primary share listing on the New York Stock Exchange (NYSE), according to a filing with the US Securities and Exchange Commission cited by Money Times.

Trading in Brazil’s slaughter cattle market was subdued last week because of the Easter holidays, which were followed by another holiday on Monday of this week. Even so, prices kept moving higher, supported by good pasture conditions that let producers pace their offerings.

Casa Blanca meat packing plant (Fricasa), an emblematic processor in Paysandú, has stepped up operations as of Tuesday, 22 April, general manager Carlos Fuidio told El Observador. In this initial phase 180 employees will be on the job, meaning many of those who had been furloughed will return. The plant will resume three slaughter days per week, aiming to process 700 1,000 head weekly after securing export deals to Europe, the United States and China.

With part of the industry focused from this week on the production window for EU Quota 481, the market for grassfed cattle remained stable. Trading is brisk, with plant bookings no more than a week out and prices at the same level as last week.

As is always the case during Easter week, cattle slaughter declined. INAC reported that 39,723 head were processed in the week to 19 April—about 10,000 fewer than the previous week.

Supply of sheep for slaughter is almost nil and current demand is likewise very limited. There is speculation that plants in the north west (Casa Blanca) and in the south central region (Trinidad) may resume activity with the species.

Against most forecasts, the first step in lifting exchange controls—introducing a managed float band—pushed the local dollar down instead of up. Before the change, exporters used a blended rate made up of 80 % of the official rate and 20 % of the financial “CCL” rate, worth about Ar$ 1,130.

Exports of chilled and frozen beef reached 43,379 t (product weight) in March, down 17.2 % from February, 36.1 % from March 2024 and the lowest monthly volume since January 2022. In terms of value, shipments totaled US$ 205.9 million, 20.1 % lower both month on month and year on year.

In January March 2025, beef exports totaled 142,467 t—28.4 % less than a year earlier—and were worth US$ 694.4 million, down 7.5 %.

China, Argentina’s main customer, took 12,214 t of bone in beef and trimming bones (US$ 20.3 million) and 17,161 t of boneless beef (US$ 71.9 million) in March—the smallest monthly volume so far this year. Together, those purchases gave China a 67.7 % share of Argentina’s March exports.

Chilled boneless exports fell 22.6 % year on year in March.

After the short Easter week and the policy announcements, slaughter cattle prices seem to have stabilized at last week’s levels. The best export steers—British crossbreds— quote in the Ar$ 5,000 5,100 range per kilo dressed weight, while zebu cross steers fetch Ar$ 4,900 5,000.

A run of rainfall has left large areas of pasture under water in the Central and Upper Chaco, pushing cattle prices higher. Finished steers have crossed the psychological threshold of US$ 4.00 per kg carcass weight.

Cattle and calves on feed for the slaughter market in the United States in feedlots with capacity of 1,000 or more head totaled 11.6 million head on April 1. The inventory was 2 percent below April 1, 2024.

The percentage of cattle slaughtered each week during the periods of low slaughter volumes is reporting smaller volumes of cash sales. This is not surprising given the committed cattle in the large feeding companies necessarily contributes to a larger percent of the weekly slaughter when volumes drop. This condition contributes to more volatility in the cash trades.

Compared to the last market test, beef import prices in the US were slightly to moderately lower on a light test.

The European Commission has announced new measures to reduce the bureaucratic burden linked to its anti-deforestation legislation, which is set to take effect at the end of this year. Aimed at cutting costs for businesses, the changes are also expected to have a positive impact on exporters.

The law is designed to block access to the European Union market for seven products—soy, beef, coffee, timber, palm oil, rubber, and cocoa—as well as their derivatives such as leather, chocolate, tires, and furniture, if they are produced in areas deforested after the end of 2020.

Russia is negotiating with Indonesia to begin exporting animal origin products, mainly beef, according to Deputy Agriculture Minister Maxim Borovoi, who visited Jakarta. Russian meat producer Miratorg also held talks on beef exports during the visit. Indonesia currently sets import quotas for beef, but Russian companies cannot apply for an allotment because they lack certification under Indonesian regulations, Borovoi said. Talks are under way to start the certification process.

The World Organisation for Animal Health (OIE) has restored Germany’s status as free of foot and mouth disease without vaccination, lifting all trade restrictions in the Brandenburg and Berlin containment zone. Brandenburg Agriculture Minister Hanka Mittelstädt hailed the OIE decision as good news for livestock owners in Brandenburg and throughout Germany.

Chinese beef imports in March totaled 210,000 tons, plus about 10,000 tons of beef offal, according to General Administration of Customs (GACC) data released by OIG+X. The value of this trade flow reached US$1.064 billion. Volume fell 12.4% year on year, while value declined 9%, so the average import price rose to about US$/t 5,070.

Philippine meat imports in the first two months of 2025 rose by one third from a year earlier to more than 230,000 tons, driven by larger purchases of pork and chicken, according to the Bureau of Animal Industry data.