With no signs of weakening demand and limited supply, trading activity with China showed another week of firmness for deals closed from Mercosur countries.

A regional trader told World Beef Report (WBR) that the Chinese market remains firm, with deals closing quickly and no room for discounts. The source reported transactions from Uruguay for shin & shank at US$/t 8,100 CFR, flank and bone-in brisket at US$/t 5,000, and 80 VL trimming at US$/t 5,200.

A regional trader told WBR that the US market showed a slight adjustment in recent weeks, influenced by cost factors and increased uncertainty, although fundamentals remain solid. “The market softened slightly last week,” he said.

The nearly 3% depreciation of the euro in recent weeks, along with uncertainty surrounding the Middle East conflict, has placed a ceiling on Hilton prices, which nonetheless remain at historical highs in nominal dollar terms. A source indicated that the currency effect has increased costs by about US$/t 600 for the rump & loin cut set for importers.

A regional trader said trade to the Middle East is facing major logistical disruptions, with containers of lamb being rerouted and negotiations ongoing to determine final destinations.

In the past week, Paraguayan processors entered the market with bids of US$/t 7,700–7,800 for the 20-cut set destined for Chile, levels that are not yet convincing some importers.

Slaughter cattle prices declined across Mercosur countries this week. The WBR Mercosur Steer Index fell by 5 cents to US$ 4.78 per kilo, with a downward trend observed in all four countries in the bloc.

The average export value of Brazilian beef is consolidating a scenario of significant recovery, driven by higher selling prices since the beginning of the year, following China’s safeguard measures aimed at protecting its domestic production.

In February 2026, 566.58 thousand cattle were slaughtered in Mato Grosso, a monthly drop of 11.6%, according to Indea data released by Imea. Despite the monthly decline, the result represents the second-highest figure in the historical series for the month of February, behind only 2024.

Feedlot costs showed divergent trends between Brazil’s Center-West and Southeast in February, interrupting the convergence observed in recent months. According to the Ponta Feed Cost Index (ICAP), feed expenses declined 6.0% in the Center-West compared with January, while they increased 2.8% in the Southeast.

The Public Prosecutor’s Office of Paraná state is investigating a fraud scheme involving cattle transactions and the irregular issuance of Animal Transit Guides (GTA), as well as the insertion of false data into systems of the Paraná Animal Health Agency (Adapar). The operation, called “Ghost Cattle,” included search warrants in the municipalities of Jaguariaíva and Ibaiti.

Brazil’s beef cattle sector is undergoing a transformation driven by productivity gains and more efficient land use. Over the past two decades, the area devoted to pasture declined 11.3%, while production per hectare nearly doubled, rising from 36.2 kg to 65.8 kg carcass weight per hectare per year, according to the Brazilian Association of Meat Exporting Industries (Abiec).

Frigol announced service agreements with the slaughterhouses DistriBoi and RioBeef, both operating plants in Rondônia approved to export to China, with the goal of expanding its beef production in 2026.

The closure of the Strait of Hormuz following the conflict involving the United States, Israel and Iran has led Brazilian chicken exporters to seek alternative maritime and land routes to ensure deliveries to final destinations, Ricardo Santin, president of the Brazilian Animal Protein Association (ABPA), told Valor newspaper.

Favorable pasture conditions in some of Brazil’s main cattle-producing regions are limiting further downside pressure on cattle prices from processors and preventing an extension of slaughter bookings.

The Type Steer 2.0 indicator, developed by the National Meat Institute (INAC), rose again in February 2026 to reach US$ 1,932 per head, the highest level ever recorded for this indicator. However, despite this new record in US dollars, the indicator currently generates lower revenues in Uruguayan pesos than the previous peak recorded in 2022.

On March 17, Chinese authorities suspended the approval of San Jacinto slaughterhouse, owned by the Urgal family. Company sources confirmed the suspension and said the reason was the detection of residues of the tickicide fluazuron in a shipment from September last year.

The Florida meat plant officially reopened its doors this Friday under the management of the Saturno group, which works providing meat to the domestic market. The inauguration ceremony was attended by President Yamandú Orsi, Florida governor Carlos Enciso, and national government authorities. Luis Avero, director of Saturno, said the project aims first to consolidate its presence in the domestic market and later move toward exports.

Activity in the slaughter cattle market remains minimal, with several plants out of the market and others quoting widely divergent prices for the same category.

Slaughter bookings are also highly uneven. Some processors are buying for next week, while others are booking cattle without a set price for delivery in 15–20 days.

After hitting its lowest level of the year since early January, cattle slaughter recovered in the second week of March. According to INAC data, 41,039 head were processed in the week ending March 14, an increase of 11% (+4,184) from the previous week.

The sheep market remains firm, with very limited supply and prices continuing to trend upward. Some processors have shown greater flexibility when purchasing adult animals, increasing the carcass weight limit to 26–27 kg, compared to the previous cap of 24 kg.

Although the new 80,000-ton tariff quota granted by the United States to Argentina this year took time to be officially implemented, it may end up being better utilized than initially expected.

Argentina’s beef exports are projected to reach about 800 thousand tons carcass weight equivalent in 2026, according to forecasts from USDA-Buenos Aires. Although slaughter is expected to fall to around 13 million head —about 600 thousand fewer than in 2025— the impact on production will be partially offset by a significant increase in average carcass weights.

A wave of positive news from abroad in recent months —including the new US quota, a favorable China quota, the EU-Mercosur agreement quota along with tariff reductions for the Hilton quota, and the opening of the Japanese market— combined with tight cattle supply and strong international prices to drive a sharp increase in Argentine cattle prices. Over the past year, prices rose nearly 70%, more than double the inflation rate.

Prices for higher-quality export steers eased to a range of Ar$ 8,200–8,300 per kg carcass weight for crossbred animals, while zebu-cross steers were quoted around Ar$ 8,100–8,200 per kg.

The slaughter of females and, in particular, pregnant cows is again raising concern within Paraguay’s cattle sector at a time when the industry is seeking to rebuild the herd and increase calf production.

Heavy rains across several regions of Paraguay further tightened the already limited availability of cattle for slaughter over the past week, with prices remaining firm. Values are ranging between US$ 4.60 and 4.80 per kg for standard steers and US$ 4.35–4.50 for cows, although —as usual— higher prices are being secured for cattle available for immediate delivery. “There are very little finished cattle and feedlots are moving slowly,” a source said.

The US beef and veal import forecast, in-carcass-weight equivalent, for the first quarter of 2026 was at 1.55 billion pounds (703 thousand tons), up 68 million lb, or 5%, compared to the first quarter of 2025, the US Department of Agriculture said, informed S&P Global.

US beef exports totaled 92,558 tons in January, down 10% year-over-year, though export value declined only 3% to US$ 780,1 million, reflecting higher average prices. Beef muscle cut exports were down in 12 thousand tons to 65,047 for US$ 654 million. Volume was down 16% in the annual comparison, while value fell 9%.

The Texas & Southwestern Cattle Raisers Association welcomed the decision by the U.S. Department of Agriculture (USDA) and the U.S. Army Corps of Engineers (USACE) to award a construction contract for a new sterile fly production facility at Moore Air Base in Edinburg, Texas.

Thousands of workers at one of the largest beef processing plants in the United States began a two-week strike in Colorado, potentially adding further pressure to already elevated beef prices.

Processor margins in the US beef industry have recently moved back into positive territory, which could encourage packers to increase cattle slaughter in the coming weeks. According to The AG Center, maintaining a competitive market between processors and cattle feeders is key, and improved margins could lead more plants to add Saturday kills as profitability returns.

According to the USDA weekly report, US import beef prices were mostly moderately lower compared with the last market test.

Beef prices recorded a strong increase across the European Union during 2025 amid tighter cattle supplies in the market.

Germany confirmed an outbreak of Newcastle disease at a turkey finishing farm in the state of Brandenburg, the first case recorded in the country since the disease was eradicated from poultry in 1996.

The USDA office in Wellington forecasts a recovery in New Zealand’s beef production in 2026, supported by improved weather conditions, record farmgate prices and greater herd retention.

Integration between the dairy and beef sectors continues to deepen in New Zealand through the system known as dairy-on-beef, which is reshaping the structure of the country’s cattle production. According to the USDA-Wellington report, between 60% and 70% of New Zealand’s cattle slaughter currently originates from animals coming from the dairy herd.

The center-right coalition government that took office in New Zealand in late 2023 has begun reviewing several environmental and production regulations implemented by the previous administration. According to the USDA-Wellington report, the official objective is to reduce the regulatory burden on agriculture and strengthen the competitiveness of the farming sector.

Australia’s National Heavy Steer Indicator climbed to A$/c/kg 465,29 liveweight, placing it among the highest levels on record and just below the all-time peak of A$/c/kg 471 reached in October 2021. The current level has already surpassed other historic highs, including A$/c/kg 464 recorded in November last year.

Catering activity was one of the main drivers of consumption in China during the Spring Festival holiday, according to a report by OIG+X based on official Chinese data.

OIG+X informed that the Shanghai Port has strengthened the review of declarations for bone-in beef. The declared product name must clearly indicate the “with meat” attribute in English and the corresponding description in the exporting country’s language.

China’s customs authority (GACC) rejected the entry of 388 tons of beef in January, most of which originated from the United States and Pakistan.

China’s economy started 2026 with a better-than-expected performance, driven by a recovery in consumption and investment, although doubts remain about the sustainability of this improvement amid rising geopolitical tensions linked to the war in Iran, Bloomberg reported.

In the first two months of 2026, China imported 1.084 million tons of meat and offal worth US$ 4.644 billion, according to data from China Customs.

Fausto Brighenti, partner and director of Ideal Leader International LLC, analyzed the strong momentum of the US market, the opportunities for Argentina following the expansion of its quota, and the new price phase that China is beginning to show.