The general view among regional operators is that the Chinese market remains weak, with no clear signs of recovery. However, a Chinese trader told WBR that the market may be entering a period of greater stability after several weeks of downward pressure.

A regional trader reported new business from Paraguay to Taiwan, a market that continues to show interest in higher-value products.

The European chilled Hilton market has begun showing some signs of stabilization after several weeks of adjustments and intense discussions over how to distribute the benefits from the elimination of the 20% tariff.

In the United States, an Australian trader said that buyers capable of sourcing beef from any origin are taking advantage of more competitive offers from South America. As a reference, the trader noted that Australian 90CL has been trading around US$/t 8,050 CIF, while some importers claim they can source comparable Argentine product at approximately US$/t 6,850 CIF.

Weak activity in China continues to force Brazilian exporters to seek alternative markets for their production.

“We are still struggling. China is dead,” a Brazilian exporter told WBR. According to the source, companies are attempting to place volume in other destinations, but the response has not been particularly encouraging. “The Middle East and Asia are being very cautious,” the exporter added.

A Paraguayan exporter indicated that business with Chile continues, although not necessarily for traditional 19/20-cut sets.

World Beef Report’s (WBR) Mercosur Steer Index fell 12 cents over the past week to US$/kg 4.81 carcass, reaching its lowest level since late March. Much of the decline was driven by currency depreciation in Brazil and Argentina.

The European Union’s decision to suspend imports of Brazilian meat products is expected to have a relatively limited impact on the country’s major exporters, although the degree of exposure varies significantly among companies, according to an analysis by Genial Investimentos.

The European Union has confirmed the suspension of imports of meat, casings, fish products and honey from Brazil, effective September 3, after concluding that the country has not fully demonstrated compliance with EU requirements regarding the use of antimicrobials in animal production.

Brazil’s intensive cattle sector is heading toward another record in 2026. Preliminary results from the Feedlot Census indicate the country will finish the year with 9.78 million cattle finished in feedlots, up 5.7% from the 9.25 million head recorded in 2025.

China has officially recognized the entire Brazilian territory as free of foot-and-mouth disease (FMD) without vaccination, a move expected to pave the way for expanded exports of animal protein products to Brazil’s largest overseas market.

Brazilian beef exports surpassed 260 thousand tons in May, the highest monthly volume so far this year, according to data released by the Secretariat of Foreign Trade (Secex).

The rush by Brazilian exporters to complete beef shipments to China before the quota is filled led to a significant increase in exports to the Asian market in May.

With China taking a larger share of Brazil’s exports last month, shipments to the United States declined. Although they were about 2 thousand tons higher than in May 2025, they were the lowest since last November.

What European importers are unable to source from the River Plate region is being offset by higher imports from Brazil.

Brazil exported 62,590 tons of fresh beef during the first week of June, according to Agrifatto. Average daily shipments reached 15,650 tons, up 33.8% from the previous week.

Brazil's cattle market remained firm in recent sessions, supported by stronger domestic demand and expectations of tighter cattle supplies in the coming months. According to Agrifatto, the physical market closed last Friday with slight gains across most monitored regions. Minas Gerais stood out, with the finished male price rising 0.51% from the previous day to an average of R$/@ 329.48. In the futures market, the June 2026 contract advanced 0.47% to R$/@ 352.75.

Frigorífico Rosario will undergo a Chinese audit this Wednesday aimed at approving exports of biliary calculi to that market, WBR has learned. In addition, the plant expects to regain authorization to export beef to China by the end of this month or early July.

Intermediaries consulted by WBR perceive a calmer market than in previous weeks, with less aggressive demand from processors and prices easing a few cents from recent highs.

With a full working week following a holiday-shortened period, cattle slaughter regained momentum during the first week of June, reaching 46,386 head, up 21% from the final week of May (38,206 head), according to INAC.

After falling to just over 1,500 head at the end of May, sheep slaughter recovered somewhat during the first week of June, although it remains far below year-ago levels.

As of June 8, Argentina had already shipped more than 90% of the 20,000 tons allocated for the second quarter under the additional tariff-rate quota granted by Donald Trump for 2026, according to an official report. That represents just over 18,000 tons.

Brazil exported a record 3,125 tons of chilled and frozen beef to Argentina in May 2026, according to Informe Ganadero based on Secex data.

Cattle slaughter reached 1.001 million head in May, up 4.0% from the previous month but down 11.3% from May 2025.

During the first five months of 2026, cattle slaughter totaled 4.94 million head, approximately 540,000 fewer than the 5.48 million head processed during the same period in 2025, representing a decline of 9.8%.

Export cattle prices finally moved lower. British-breed cross steers, considered the highest-quality category for beef production, declined to a range of Ar$ 7,700-7,900 per kg hook weight, while zebu-cross steers traded between Ar$ 7,600-7,700 per kg hook weight.

The Gauto family group will take over operations at Frigonorte, a meatpacking plant located in the department of Amambay, according to information confirmed by the company to Valor Agro. The agreement was finalized in recent days as part of a medium- and long-term arrangement, with operations expected to begin during the first 10 days of July.

Paraguayan beef exports continue to track significantly below last year’s levels because of the sharp decline in production. However, the same is not true for shipments to Israel, whose share is increasing.

Paraguay’s cattle market continues to strengthen, with prices rising by about 5 cents per kilogram over the past week. According to one market operator, transactions for standard slaughter-ready males are being concluded within a range of US$/kg 4.95-5.00 carcass, bringing the market reference to the historic US$/kg 5.00 carcass threshold.

USDA has confirmed the first case of New World screwworm (NWS) in the United States. The infestation was detected in a three-week-old calf in Zavala County, Texas, where larvae were found in the animal’s navel area. No additional cases have been reported to date.

USDA has confirmed two additional cases of New World screwworm (NWS) in Texas, raising concerns about the re-emergence of the pest in the United States. The new detections involve a calf in La Salle County and a dog in Andrews County.

Agricultural authorities in Tennessee and Florida have strengthened surveillance and biosecurity measures following the confirmation of New World screwworm (NWS) cases in Texas, aiming to prevent the spread of the parasite into key livestock-producing regions.

The confirmation of a second New World screwworm (NWS) case in Texas has created additional challenges for US animal health authorities, who now face the dual task of containing the pest while minimizing disruptions to cattle movements. While the latest detection will expand the restricted zone, market participants are already anticipating broader impacts on cattle transportation both within Texas and across state lines.

Imported beef prices in the US were slightly to moderately lower during the latest reporting period. Softer demand from both the foodservice and retail sectors continued to weigh on the market, according to the USDA weekly report.

The FAO Meat Price Index averaged 129.4 points in May, up 1.2% from April and 6.4% higher than a year earlier, reaching a new all-time high.

Australia exported 152,438 tons of beef in May, the highest monthly volume on record, surpassing the previous record of just over 150,400 tons set in July 2025. Export volume was 18% higher than in May last year and about 11,500 tons above the already strong level recorded in April.

Australian cattle prices rebounded strongly during May after trending lower since mid-March. According to MLA, the turnaround was driven by a combination of tighter supplies and stronger demand from restockers, feedlots and processors.