Report 1636

The return of Chinese operators this Tuesday, after Monday’s Dragon Boat Festival holiday, did not bring significant changes in the importers’ attitude to push for lower buying prices. However, some deals closed at levels similar to those achieved during the recent SIAL fair, particularly from Brazil.

Taiwan remains one of the few markets with “some consistency,” said a Paraguayan exporter. He reported deals to WBR for chuck tender and oyster blade at US$/t 6,700 and US$/t 6,500 CFR, respectively.

Another weak week for Hilton rump & loin cuts in Europe. Import market sources reported Argentina deals last week in the US$/t 16,800-17,300 FOB range. Some operators quoted US$/t 17,000, while others saw broader ranges with floors around US$/t 16,500.

US Secretary of Commerce Howard Lutnick said Sunday that tariffs “are not going away,” despite last week’s court ruling declaring many Trump-era tariffs illegal. The ruling was appealed the same day.

Last week saw more Brazilian beef offered in Chile, driven by a “weak domestic market” in Brazil, a local importer told WBR. He reported deals for forequarters from Brazil at US$ 5,650 CFR and 19-cut sets at US$/t 6,000 CFR.

MENA countries were active last week in buying Uruguayan sheep meat.

The WBR Mercosur Steer Index edged down 2 cents last week to US$ 3.83 per kg carcass. One key change in regional cattle markets was Brazil’s end of its recent downward trend. The average for exporting states gained 1 cent to US$ 3.40 per kg carcass after four weekly drops totaling 20 cents. The fat male @ price rose 0.4% to R$ 288, while the real appreciated 0.3% against the dollar.

The last FMD outbreak in Brazil occurred in 2006, prompting several countries to restrict imports of Brazilian beef

Brazil’s Gross Domestic Product (GDP) expanded by 0.8% in the first quarter of 2025 compared to the previous quarter, according to data released by the Brazilian Institute of Geography and Statistics (IBGE). The growth was largely fueled by a robust 12.2% increase in agricultural output, supported by record soybean and rice harvests.

On the last day of May, Brazil’s physical market for finished cattle remained stable in most cattle-raising regions—a trend that held through the start of the first week of June, with some regions even seeing price increases. Market consultancy Safras & Mercado reported gains at the beginning of this week in São Paulo (R$300.75/@), Mato Grosso, Mato Grosso do Sul, Pará and Minas Gerais.

Uncertainty caused by the increase in US import tariffs and the improvement in export prices to China led to a rise in shipments to the latter and a decrease in placements to the former. According to export application data from Customs, in May Uruguay shipped 13,443 tons of chilled beef to China and 11,508 tons to the United States. Compared to April, the volume sent to China rose by over 3,000 tons while shipments to the US fell by around 1,500 tons.

Partly due to the bulk of 481 shipments that will be entering the European Union (EU) starting July 1 and partly due to strong product demand in the old continent, Uruguayan beef exports in May were the highest since May 2009 —16 years ago— according to export application data reported by Customs. They totaled 6,640 shipment weight tons, of which 4,296 tons were chilled beef and 2,344 tons were frozen.

The plant’s last slaughter took place in mid-February, as the company was forced to file for voluntary creditor protection due to the bankruptcy of Conexión Ganadera

A recent official mission to the People’s Republic of China, led by representatives of Uruguay’s Ministry of Livestock, Agriculture and Fisheries (MGAP), marked a significant step forward in strengthening the “comprehensive strategic partnership” between the two countries

This Monday marked a new edition of Experiencias Clipex, a fixture each June. Under the theme Livestock intensification: adapt and stay, speakers included Álvaro Ferrés (Numix director and feedlot advisor), Marcos Guigou (ADP director), and Patricio Silveira (CEO of Minerva Foods in Uruguay). The event was moderated by journalist Martín Olaverry.

There have been no major changes in the cattle market over the past week. The shortage of grassfed finished animals continues, while packer demand “remains firm,” with booking windows ranging from 3 to 6.7 days, according to sources consulted by World Beef Report (WBR).

Despite one fewer working day due to Labor Day, slaughter dropped 6% last week. According to data from INAC, 44,915 head were processed in the final week of May, nearly 3,000 fewer than the previous week. Steers accounted for 21,576 head (-1,556), cows 16,396 (-727), and heifers 5,898 (-622).

Sheep slaughter fell sharply in the final week of May, with 5,534 head processed compared to 13,000 the previous week. The most active plants were Frigocerro (3,524 head), followed by Las Piedras (1,327) and Oferan (521).

Grupo Lequio announced the acquisition of 80% of the shares of Grupo Mattievich, which includes five slaughter plants and one by-products facility located in Santa Fe province: one slaughterhouse and a by-products processing plant in Carcarañá, two slaughterhouses in Villa Gobernador Gálvez, another in Casilda, and one more in Arroyo Seco.

Through Resolution 727/2025, the administration of Javier Milei repealed Resolution 537/1992, which had imposed a 15% export tax on hides (already suspended in recent months) and a formula for calculating the taxable base, which the meat industry had long requested be revoked.

Cattle prices for export remained mostly steady, except for a slight drop in the top prices paid for British-breed crossbred steers, which fell by Ar$ 50/kg carcass. That category is now quoted at Ar$ 5,000–5,100/kg carcass, while Zebu-crosses are still trading at Ar$ 4,800–5,000/kg carcass.

Senacsa reported that in May, Paraguayan export slaughterhouses processed 222,068 cattle, 50,745 more than in April and the highest monthly total since May 2022, three years ago. The average carcass weight rose to 247.2 kilos per head, 7.5 kilos more than in April and the highest since October 2024.

Data released by Senacsa show Paraguayan beef exports totaling 149,509 tons worth US$ 189.2 million, with an average value for the first months of the year of US$ 5,671 per ton (shipment weight).

“The market is paralyzed. There are no deals from either side — packers or producers,” a market agent told World Beef Report (WBR). Several plants have already filled their slaughter schedule for June and are even postponing some deliveries. “That may signal a contraction in slaughter activity,” the source speculated.

The recognition was granted during the 92nd WOAH General Session, held in Paris.

The New World Screwworm, a parasitic fly that infests and kills livestock by burrowing into their flesh, is spreading north from Central America into Mexico, nearing the US border. This development has prompted the U.S. to halt cattle imports from Mexico, further exacerbating an already low national cattle supply and contributing to record-high beef prices, Reuters said.

This past week’s cattle slaughter in the US was one of the smallest on record for Memorial Day week — if not the smallest. Packers, facing tight supplies of fed cattle, reduced the slaughter to 477,000 head, down 93,000 from the previous week and 62,000 below last year’s holiday-week level.

Compared to the last market test, import prices were mostly slightly lower, with some instances unevenly steady.

Between 2004 and 2024, the European Union (EU) saw a 32.4% reduction in its breeding sow population, falling from 15.02 million to 10.15 million animals. Despite this decline, total pork production remained virtually unchanged, with 21.1 million tonnes in 2004 and 21.04 million tonnes in 2024, according to pig33.com.

Indonesia has approved the import of live cattle from Brazil and New Zealand, according to confirmation from New Zealand government officials reported by Beef Central. The approval was issued by Indonesia’s Ministry of Agriculture (MoA) during a meeting in Jakarta, following several years of negotiations.

The latest SIAL held in China “left much to be desired” and felt “bittersweet,” at least for Uruguay, according to Elizabeth Misa, director of Las Moras meat plant