The US$ 5/kg carcass weight average that prevailed for slaughter cattle across the region through the first half of May is becoming increasingly distant. The WBR Mercosur Steer Index declined again this week to US$ 4.72/kg carcass weight, down US$ 0.06 from the previous week and US$ 0.36 below the annual peak reached in the second half of April.
The weekly decline was driven by two factors: lower cattle prices in Brazil and the weakening of the Argentine peso.
In Brazil, the boi gordo posted its second consecutive weekly decline. The average price across the country's main cattle-producing states fell by US$ 0.08 to US$ 4.19/kg carcass weight.
In Argentina, export steer prices were unchanged in local currency, but a 1.6% depreciation of the exchange rate reduced the dollar equivalent by US$ 0.09 to US$ 5.67/kg, including the 5% export tax on steer beef.
Uruguay and Paraguay posted stable prices this week, with special steers quoted at around US$ 5.58/kg carcass weight in Uruguay and US$ 5.00/kg carcass weight in Paraguay.
