China’s beef market continues to show very limited trading activity and, so far, none of the recovery signals that some operators had expected following the anticipated exhaustion of import quotas from key suppliers have materialized.

Australian traders are also describing a highly cautious market in China. One Australian trader said the main development of the week was the unofficial confirmation that Australia has likely exhausted its 205,000-ton quota for the 2026 calendar year.

The European market for Hilton rump & loin cuts has shown somewhat firmer pricing over the past two weeks, supported mainly by reduced Argentine supply. According to one importer, current indications are around US$/t 18,500-19,000 FOB for Uruguay and US$/t 19,500-20,000 FOB for Argentina. “There is less Argentine supply and that is helping support prices,” he said.

The US market continues to show a weaker tone for South American beef, amid strong competition from Brazil and a more speculative attitude among importers. A regional source said the foodservice segment continues to benefit from seasonal summer demand, but the situation is different for commodity products.

An Australian trader said the possibility of lower tariffs on imported beef in the US appears to have lost momentum. According to the source, a recent meeting of the Meat Import Council of America (MICA) was dominated by the view that there is strong political and industry opposition to any trade liberalization, particularly from US cattle producer organizations.

The Middle East market remains active for selected beef cuts, although buyers continue to take a cautious approach. A regional trader reported Brazilian business into the region at US$/t 6,900 CFR for topside and US$/t 14,000 CFR for tenderloins.

As sales to China continue to slow sharply, some Brazilian exporters are finding selective opportunities in Russia, although the broader international market remains very quiet.

The Chilean market continues to show activity, although operators agree that business is moving more slowly than in previous months. A Paraguayan processor indicated that current prices for the traditional 19-cut set are around US$/t 7,800 CFR from Paraguay, a level that some buyers continue to accept. Another Paraguayan exporter highlighted that Chilean demand remains surprisingly firm.

Brazil’s domestic market continues to show strong demand for certain premium cuts, particularly picanha. A Paraguayan exporter said Brazil is paying around US$/t 10,000 for A-grade picanha, reflecting the strength of domestic consumption and the difficulty of sourcing certain cuts.

The price of slaughter cattle strengthened across the region. The World Beef Report (WBR) Mercosur Steer Index gained 8 cents during the week to US$/kg 4.89 carcass.

Cattle slaughter in federally inspected plants (SIF), which account for Brazil’s export-oriented industry, totaled 11.81 million head between January and May, down 2.3% from the same period in 2025. However, behind this moderate overall decline, a clear regionalization of cattle supply is beginning to emerge, with reductions concentrated in some of the country’s main producing areas.

Brazil’s leading animal protein export associations have asked the Ministry of Agriculture to expand restrictions on the use of antimicrobials in animal production, seeking to strengthen the country’s position in negotiations with the European Union following the suspension of Brazilian animal protein imports effective September.

Russian sanitary authorities have officially recognized all of Brazil as free of foot-and-mouth disease (FMD) without vaccination, in line with the new sanitary status recently granted by the World Organisation for Animal Health (WOAH). China granted the same recognition last week.

Vietnam has authorized two additional Brazilian beef plants to export to the Asian market. The newly approved facilities belong to Naturafrig in Pirapozinho, São Paulo, and Sulbeef in Aparecida do Taboado, Mato Grosso do Sul.

Brazil exported 67,100 tons of beef during the second week of June, a record for that period of the month. The volume shipped was equivalent to a daily average of 13,420 tons, down 14.2% from the pace recorded during the first week of June, according to Agrifatto based on Secex data.

Brazil’s finished cattle market continues to send mixed signals. According to Agrifatto, supplies of slaughter-ready cattle remain limited, with producers holding back animals in anticipation of higher prices. On the processor side, packers are maintaining a cautious stance amid uncertainty surrounding exports, particularly the possibility that China could exhaust its beef import quota between mid-June and early July.

Chinese sanitary authorities have flagged Frigorífico Tacuarembó after detecting residues of imidocarb, an antiparasitic drug, in a shipment of Uruguayan beef, prompting a new investigation by Uruguay’s Ministry of Livestock.

The value generated from the sale of all products obtained from a Type Steer 2.0 after industrial processing increased by 4.8% in May from the previous month, reaching US$ 2,115 per head and setting a new record high in the historical series. All components of the indicator posted gains when measured in US dollars.

The cattle market continues to be characterized by limited supply, although processors have become somewhat more selective in their purchasing. According to sources consulted by World Beef Report (WBR), the plants that had been leading the market with the highest prices in recent weeks have now secured cattle for a longer period, while some major groups have reduced slaughter activity and extended bookings. In addition, several processors are relying on feedlot cattle, leaving less room for grass-fed animals.

As anticipated, a one-day strike organized by FOICA last week reduced processing activity. Beef slaughter totaled 39,654 head, down 14.5% from the previous week.

Sheep processing posted its weakest performance of the year. During the second week of June, only 357 head were slaughtered.

Slaughter sheep prices continued to strengthen during the second week of June, according to ACG. Lambs averaged US$/kg 6.13 carcass, up 2 cents, wethers reached US$/kg 5.20 carcass, up 4 cents, and ewes averaged US$/kg 5.11 carcass, up 3 cents.

With 15 days remaining before the deadline for the second quarterly allocation (April-June) of 20,000 tons under the new tariff-rate quota granted by Donald Trump to Argentina for 2026, 97.77% of the volume had already been utilized, according to official US government data.

Activity in Argentina’s beef packing industry has fallen to its lowest level in ten years, according to a report from the meatpacking chamber CICCRA. During the first five months of 2026, slaughter totaled 4.944 million head, nearly 10% below the same period in 2025 and the lowest January-May figure since 2016, when 4.753 million head were processed.

Feedlot utilization increased to 76.8% in May, up 7.1 percentage points from the same month last year and marking the highest occupancy rate in the past two and a half years, according to a report from the Argentine Feedlot Chamber (CAF).

Export steer prices regained part of the ground lost in recent weeks, particularly in transactions involving slightly longer payment terms. British-breed cross steers, which are considered the highest-quality animals for beef production, moved into a range of AR$/kg 7,800-8,000 carcass, while zebu-cross steers widened the price gap and traded between AR$/kg 7,500-7,800 carcass.

Frigorífico Concepción announced the start of a review of its capital structure and financial obligations, aiming to achieve a comprehensive solution for its commitments across the various jurisdictions in which it operates. The company said it has already engaged specialized advisors to assist in upcoming negotiations with its different creditor groups, according to Valor Agro.

JBS announced the closure of two facilities in the United States as part of a plan to modernize and reorganize its operations in the country. The affected sites are a beef processing plant in Souderton, Pennsylvania, and a value-added products facility in Memphis, Tennessee.

The growing shortage of slaughter-ready cattle in the United States continues to drive beef prices to record levels. In May, US consumers paid an average of US$/lb 7.06 for ground beef, 13% higher than a year earlier, according to data from the US Bureau of Labor Statistics.

Markets reacted positively to signs of a peace agreement in the Middle East. Oil and grain prices moved lower, while attention is now focused on the normalization of shipping traffic and crude oil flows.

Import prices from Australia and New Zealand were mostly steady to slightly weaker, with some transactions reported generally unchanged from the previous market test. South American import prices were moderately to sharply lower amid ongoing pressure from weak foodservice and retail demand.

JBS global CEO Gilberto Tomazoni said Brazil still has time to meet the European Union’s requirements regarding antimicrobial use and avoid the suspension of animal protein exports scheduled for September. According to the executive, the main challenge is not related to industry practices but rather to the need for the Brazilian government to issue the official certifications required by European authorities.

Australia’s live cattle export industry is experiencing renewed confidence, supported by strong international demand, continued investment and closer cooperation across the supply chain. According to Mark Harvey-Sutton, CEO of the Australian Livestock Exporters’ Council (ALEC), the sector remains strategically important for northern Australia’s cattle industry and contributes approximately A$1 billion annually to the national economy.

The strong pace of beef imports into China is not being matched by a fluid wholesale market, resulting in a continued buildup of product inventories.

La Tropa Beef, the new company of the Gauto family group, will take over the commercial operation of Frigonorte under a toll-processing arrangement, targeting up to 18,000 head per month