Report 1639

Chinese importers showed a different attitude at the beginning of the week. Since Monday, the pace of inquiries and requests for offers “picked up significantly” and “accelerated even more” on Tuesday, according to a regional trader who spoke with World Beef Report (WBR). The trader reported deals from Uruguay for shin & shank at US$ 5,900/t CFR, around US$ 100/t higher than seven days ago. He also closed shipments of chuck & blade at US$ 5,400/t and boneless navel plate at US$ 4,100/t.

Interest from Taiwan in closing deals with Paraguay increased over the past week. An exporter told WBR that no large deals were concluded, as his strategy is to avoid committing to shipments more than 30 days out.

Deals for Hilton rump & loin cuts halted the downward trend seen over the previous five weeks. Last week showed “stronger firmness” in prices, particularly due to the stance of Argentine exporters who resisted going below US$ 16,500–16,800/t FOB, according to two importers speaking with WBR. Some recognized brands were already positioned at US$ 17,000/t as of Tuesday.

The surge in beef prices in Europe has caused the “secondary market” for trading GATT quota to heat up. According to a European importer, prices went from €0.20/kg six months ago to around €2/kg today. “The GATT quota market is still hot,” he said.

The U.S. import market showed a shift last week. “We’re not seeing frantic demand or a price rally, but the market is more active, with more inquiries and interest,” summarized a regional trader. For Argentine product, bids have gone up to US$ 5,200/t CIF for 90 CL. “It’s interesting to see how round cuts have surged in the U.S. over the past two or three weeks. That opens a more positive outlook for when inventories run out,” he noted.

Chile’s pace of purchases was “slower” last week.

Various African markets showed active demand for offal, with raw tripe trading at US$ 2,000/t, a price equivalent to around US$ 3,500/t for parboiled tripe in Hong Kong, according to a Paraguayan exporter.

The average price of slaughter steers in Mercosur countries rose for the third consecutive week and once again surpassed US$ 4 per kilo carcass weight—something that has only occurred for three weeks so far this year. The WBR Mercosur Steer Index increased by 4 cents during the week to US$ 4.02 per kilo carcass weight.

In the third week of June, the average export value of Brazilian beef continued to rise, even with high shipment volumes. According to data from the Foreign Trade Secretariat (Secex), in the week ending June 21, Brazil exported 51,592 tons of beef at an average value of US$ 5,477 per ton shipment weight.

Brazil declared itself free of the avian influenza virus last Wednesday (18), after no new outbreaks of the disease were detected on commercial poultry farms since the first case in May, according to the Ministry of Agriculture and Livestock (Mapa).

Between June 9 and 13, Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) sent an audit mission to Brazil to assess local slaughterhouses. The aim was to review facilities, sanitary protocols, and export records to ensure compliance with Japanese standards.

Brazil’s Securities and Exchange Commission (CVM) has postponed the shareholder vote on meatpacker Marfrig’s acquisition of poultry and pork processor BRF, according to a joint market statement released by both companies last week.

Minerva Foods has approved the ratification of a R$ 2 billion capital increase. The process was carried out through a private issuance of common shares as part of the company’s recent public subscription offering.

The upward trend in slaughter cattle prices eased after two strong weeks. The average price of finished males in Brazil’s main cattle-producing states rose R$ 2.7/@ during the week to R$ 303.8, according to consulting firm Scot’s quotes, based on 30-day payment and excluding the Funrural tax. In the two previous weeks, increases had ranged from R$ 5 to R$ 7/@.

The results of the Pregnancy Workshop organized by INIA Treinta y Tres, released yesterday afternoon, confirmed an excellent outcome for the 2024/25 breeding season.

Uruguay’s role as a supplier of grainfed beef under the European Union’s 481 quota sustained in the latest agricultural year. According to data accessed by World Beef Report, between July 2024 and June 2025 Uruguay shipped 12,376 tons of beef from grainfed animals.

With just over two weeks to go before the end of the first half of the year, Uruguay has already used 48% of its 20,000-ton duty-free beef quota with the United States. Amid a heated U.S. market — ahead of the tariff hike enacted by the Trump administration and with the lowest cattle stock in 70 years and beef and cattle prices soaring — Uruguayan exporters have capitalized on the situation.

The Somicar plant (Frigo Salto) in Salto, which is under creditor protection, plans to resume sheep slaughter with 70 workers (out of 300 total) and under court supervision. According to Salto deputy Horacio De Brum, initially only one weekly slaughter is planned.

The slaughter cattle market remains firm and well-supported, although the strong upward trend seen in recent weeks now seems to be giving way to a new equilibrium at current price levels.

Beef cattle slaughter showed moderate growth. For the week ending June 21, INAC reported that 44,471 head were processed, only 4% more than the previous week, when industrial activity had been affected by a 24-hour union strike. Compared to the same week last year, slaughter was down 2%.

The market for slaughter sheep is firm, with prices on the rise once again. As is typical for this time of year, supply is very limited, while more plants are showing interest in working with the species. Lambs are being paid around US$ 4.45 per kilo carcass weight, and mutton at US$ 3.70–3.80.

Argentina’s beef exports in May 2025 totaled 53,780 tons (product weight), up 1.4% from the previous month, though 3.8% below May 2024. In terms of value, shipments reached around US$ 293.6 million, marking increases of 9.4% month-on-month and 30.0% year-on-year.

Shipments of boneless chilled beef to the EU rose sharply by 42.1% month-on-month in May, reaching around 6,300 tons, driven by better prices and the shipment window for Hilton and 481 quotas.

In the first five months of 2025, shipments totaled around 250,400 tons (product weight), down 20.6% from the same period in 2024. However, the US$ 1.262 billion in export revenue from January to May 2025 was 4.9% higher than in the same period last year.

China, Argentina’s main beef export market, increased its purchases in May. With around 38,100 tons shipped, including 13,600 tons of bone-in beef and bones from deboning and 24,500 tons of boneless beef, it recorded its highest monthly volume of 2025 and came closest to 2024 levels in the year-on-year comparison.

Exports of bovine offal and preparations totaled 9,200 tons in May, worth US$ 16.6 million.

Export steer prices remained stable after the Ar$ 100 per kilo increase recorded the previous week. British crossbred fat steers were quoted between Ar$ 5,100 and Ar$ 5,200, while zebu crossbreeds ranged from Ar$ 4,900 to Ar$ 5,000.

The National Service for Animal Quality and Health (Senacsa) announced that from August 4 to 8, Japan’s Ministry of Agriculture, Forestry and Fisheries (MAFF) will carry out its first on-site animal health inspection in Paraguay, as part of the process to open the Japanese market to Paraguayan beef.

Slaughter livestock prices remained unchanged for the third consecutive week. Plants are maintaining listed prices of US$ 3.50 per kilo for regular steers and US$ 3.20 per kilo carcass weight for fat cows, with bookings mostly scheduled for the first days of July.

Cow slaughter was down by more than 17% through mid-May. If that trend continues through the rest of the year, beef cow slaughter would be at the lowest levels since 2015, analyst Kenny Burdine wrote in Drovers.

Cattle and calves on feed for the slaughter market in the United States for feedlots with capacity of 1,000 or more head totaled 11.4 million head on June 1, 2025. The inventory was 1% below June 1, 2024, USDA NASS reported on Friday.

War makes the markets nervous. It brings uncertainty into the mix that often leads to surprises and unintended consequences. Iran is not a trade partner for the U.S. for beef or other products, but they do control the Strait of Hormuz and lots of oil flows through that area (20%).

Compared to the last market test, US beef import prices were firm to higher, instances unevenly steady. Trading remained slow. Good demand and stronger domestic prices supported import values.

The latest Beef Producer Intentions Survey (BPIS) released by Meat & Livestock Australia (MLA) has shown that producers are confident in the sector’s outlook. It has also signaled producers are maintaining stable herd management strategies despite regional, national and global challenges.

China imported 510,000 tons of meat and offal in May for US$ 1.79 billion, according to data from the GACC reported by OIG+X. The volume was 7.9% lower than in the same month last year, while the average import value declined by a smaller margin, 6.6%.

The arrival of U.S. beef in China was heavily affected by the tariff war. According to GACC data, 5,481 tons of beef entered China from the United States in May, down 57% from the previous month and the lowest volume in several years.

China’s Ministry of Agriculture and Rural Affairs announced plans to reduce the national breeding sow inventory by 1 million animals, aiming to correct market imbalances and ease rising deflationary pressures in the economy.