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Report 1635

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editor: Rafael Tardáguila

Published: May 2025

FOB Mercosur

China holds prices steady after Sial amid cautious demand

Following the close of another edition of Sial Shanghai, Brazil's trade flow with China maintained a certain “fluidity” with “firm demand,” said a Brazilian trader to the World Beef Report (WBR). “Today the market is relatively stable. I don't see any drive or motivation to raise prices,” the source commented. Reference prices for forequarters held around US$/t 5,600–5,650 CFR, according to one broker, although an exporter claimed to have sold at up to US$/t 5,800 during the fair and rib at US$/t 6,500 CFR.

FOB Mercosur

Fresh drop for chilled and frozen beef in Europe

With “a bit more supply from Argentina” and a European market struggling to “pass on” recent price gains to consumers, rump & loin Hilton prices corrected downward last week. Import and export sources cited prices in the US$/t 17,000–17,500 FOB range for Argentine Hilton. In Uruguay’s case, while Europe sought to pay US$/t 16,000–16,200 FOB, most of the industry positioned at US$/t 16,500 FOB last week, said a trader.

Brazil

Avian flu slows down cattle purchases by beef packers

The confirmation of the first avian flu case in a commercial farm in Brazil — located in Montenegro (RS) — has increased caution among beef processors when it comes to cattle procurement. The main concern is that chicken, a direct competitor to beef, could gain ground in the domestic market after more than 20 countries imposed restrictions on Brazilian poultry imports.

Uruguay

No surprises: Uruguay rated “low risk” for deforestation by the EU

The European Commission published last Thursday its classification of countries whose exports to the European Union could be linked to deforestation at origin. As expected, Uruguay was listed among the “low risk” countries. This means that only 1% of shipments will be subject to inspection. Deputy Foreign Minister Valeria Csukasi told El Observador that the classification is a “recognition” of Uruguay’s environmental and production management, and that being labeled “low risk” grants the country “a different status.” The only other South American country in this category is Chile.

Uruguay - Markets

No signs (for now) of price easing in the finished cattle market

Cattle prices remain on an upward trend, with no drastic change in scenario expected in the short term. That’s the sentiment shared by several agents in the finished cattle market. Last week, strong and widespread demand from processors across categories persisted, further strengthening prices. One intermediary quoted special grassfed steers at US$ 4.80–4.85 per kg carcass.

Uruguay - Markets

Minerva stoppages hit slaughter hard, down 15%

Slaughter activity slowed sharply, falling below 50,000 head. In the week ending May 26, a total of 47,471 head were processed, a 15.4% drop (–8,648) compared to the previous week, according to INAC. Steer slaughter totaled 23,132 head (–23.2%), cows 17,123 (–2.4%), and heifers 6,250 (–18.4%).

Uruguay - Markets

Weekly sheep slaughter up 10%

Sheep slaughter totaled 13,049 head, up 10.3% from the previous week and marking the highest activity level since the last week of March, according to INAC. Lambs led the figures with 8,144 head processed, followed by ewes (3,734) and hoggets (960).

Argentina - Markets

Export steer prices hold, cows edge lower

Export steer prices remained steady compared to the previous week. Top-quality finished crossbred steers (British breeds) are still trading around Ar$ 5,000–5,150 per kg dressed, while zebu crossbreds continue in the Ar$ 4,800–5,000 per kg dressed range.

Paraguay - Markets

Sharp downward correction in finished cattle prices

Cattle prices saw a marked correction last week. According to market sources, very few plants were purchasing raw material at the start of this week. Slaughter steers dropped 30 cents, with the latest deals at US$ 3.80 per kg carcass, while cows traded at US$ 3.40–3.45 per kg.

North America

Continued focus on demand long-term goal for US red meat

As the US Meat Export Federation, (USMEF) convenes in Fort Worth for its Spring Conference May 21-23, talks of cattle herd size and rebuilding have come to mind. As keynote speaker, Randy Blach, CEO of CattleFax, addressed the topic noting that the industry is still in tight fed cattle supplies and there are more hooks than cattle to fill them when it comes to processing capacity, Drovers said.

North America

US Cattle on Feed drops 2% in May

As of May 1, 2025, the number of cattle and calves on feed for the US slaughter market in feedlots with a capacity of 1,000 or more head totaled 11.4 million. This figure represents a 2% decrease compared to the same date in 2024.

North America - Markets

Fed cattle firmer

Markets were closed for Memorial Day this Monday. The processors will enter this week with a very light inventory of livestock for slaughter but this week’s slaughter volume is expected to record breaking small. Packers will sieze on the anticipated volume to regain some bargaining power with the retailers. Cattle owners will attempt to maintain their leverage on cash prices.

Europe

US and EU to negotiate to avoid tariff escalation

President Donald Trump announced a postponement of the 50% tariff hike on EU products until July 9, following a call with European Commission President Ursula von der Leyen. The move is intended to create space for serious trade negotiations and avoid further escalation in the transatlantic trade war.