The Chinese market showed further signs of firmness, with some business concluded at prices above those of previous weeks and greater interest in specific cuts. However, operators consulted by World Beef Report (WBR) warned that the recovery remains partial and that its evolution will depend on how import quotas are administered.

The European Hilton chilled beef market came under slight downward pressure during the past week, while the gap between Uruguay and Argentina narrowed again.

A Uruguayan exporter said the market is “a little more pressured” but remains “very close to Argentina”. As a reference, he said the lowest level at which he closed Hilton rump & loin business was US$ 18,800/ton FOB, while Argentine product was quoted at US$ 19,000–19,500/ton FOB.

An Argentine trader attributed much of the current weakness in the US market to seasonal factors and said extraordinary circumstances such as the Chinese and US quotas had amplified a pattern that is normal at this time of year.

The sharp increase in Brazilian cattle prices led several companies to adopt a more cautious stance in the international market. “With cattle prices higher, we have slowed sales somewhat,” a Brazilian industry source told World Beef Report (WBR).

Business with the Middle East continues to show a low level of activity. “Everything remains very quiet,” a regional trader consulted by World Beef Report (WBR) summarised.

The Chilean market remains virtually at a standstill this week due to the closure of border crossings following heavy snowfall in the Andes. A regional trader said that “nobody wants to do anything” and estimated that the situation may not normalise for another seven to 10 days, based on weather forecasts.

Cattle prices across the region maintained their upward trend for a third consecutive week. The WBR Mercosur Steer Index rose 2 cents during the week to US$ 4.77 per kilo carcass weight, accumulating a 10-cent recovery over three weeks.

The suspension of exports to China, together with the downward trend in prices since mid-May, is being reflected in the weekly beef shipment data released by the Foreign Trade Secretariat (Secex).

Brazilian President Luiz Inácio Lula da Silva and Chinese President Xi Jinping agreed to accelerate negotiations for a trade agreement between China and Mercosur, including the flexibilities required by the bloc’s member countries.

The shift comes after new US tariffs on part of Brazil’s exports took effect. Although the issue was not officially mentioned in the conversation, Lula reaffirmed his intention to diversify markets and trading partners.

Brazil’s support marks a significant change from its position in recent years. Brasília and Buenos Aires had resisted a free trade agreement with China over concerns about its impact on regional industry.

Uruguay had been the first to pursue that option. During Luis Lacalle Pou’s administration, Montevideo moved forward in 2021 with a feasibility study for a bilateral agreement with Beijing amid the lack of consensus within Mercosur, but the initiative failed to advance.

Source: South China Morning Post.

After 17 years of negotiations, Brazil and South Korea agreed that a South Korean sanitary mission will visit the South American country next month, in a move that could open the Korean market to Brazilian meatpacking plants.

Bradesco BBI lowered its target price for JBS BDRs (Brazilian depositary receipts) from R$ 110 to R$ 97, revising its estimates to incorporate more conservative margins for 2026 and 2027. Despite the cut, the bank maintained its buy recommendation and continues to view the company as its main long-term investment thesis in the protein sector. JBS is due to report its results on August 10, after the market closes.

Brazil’s Ministry of Agriculture and Livestock (Mapa) denied that the government had asked the European Union to relax sanitary requirements for meat exports. Technical negotiations remain ongoing as the deadline for a possible suspension of exports approaches.

The JBS unit in Mozarlândia, Goiás, received two rejections from the Federal Inspection Service following a European audit that identified persistent shortcomings in its sanitary system. Despite the irregularities, the plant remains authorised to export.

Tight supply and higher beef prices in the wholesale market pushed boi gordo prices higher for a second consecutive week.

The Ministry of Economy and Finance clarified that 77.5% of Uruguay’s exports to the US market will not be affected by the new tariff, while the government works to mitigate the impact on the products that are covered.

Brazil’s proposal to exchange Uruguay’s beef quota in China for Brazil’s share of the Mercosur quota with the European Union drew a critical response from Uruguay’s meatpacking industry. Two industry sources consulted by WBR questioned both the logic behind the swap and the practical feasibility of the operation.

Uruguay exported 75,000 live cattle in June, the highest monthly volume since June 2018, eight years ago, according to information from the National Meat Institute (INAC).

As a result, exports in the first half of 2026 totaled 171,180 head, around 10,000 more than in the same period last year. After running below year-earlier levels during the first five months, the strong increase in June reversed the trend.

The 2025/26 season ended with exports of 379,152 cattle, 7,628 fewer than in the previous season and the third-highest total on record. The record was set in 2017/18, when 451,000 live cattle were exported.

June is usually a month of strong export activity, as larger numbers of calves born during the previous spring begin to be shipped after being marketed during the main sales season.

Turkey remained the leading destination for Uruguayan cattle in the first half of the year, accounting for 58% of the total, or around 99,000 head. Sales to Israel increased sharply and represented 35% of the total, or approximately 60,000 animals. Morocco completed the list of destinations, with 8% of exports.

In terms of sex, female cattle accounted for a larger share of exports this year, at 25% of the total, while males represented 75%. In the previous year, males had accounted for 79%. Some 84% of the cattle were under two years of age at the time of shipment.

The court-appointed receiver in the Conexión Ganadera insolvency proceedings, Alfredo Ciavattone, recommended accepting a US$ 2.1 million offer to acquire the Bamidal meatpacking plant, which belonged to Gustavo Basso and is currently being liquidated.

Part of the industry began concentrating activity on the 481-quota window, while other plants reduced slaughter days in response to extremely tight supply. Even so, the market remains very firm, with prices holding at the record levels reached last week.

Cattle slaughter fell below 40,000 head last week, the lowest level in six weeks. INAC reported that 39,748 cattle were slaughtered in the week to July 25, down 3,209 head from the previous week (-7%) and 22% below the more than 50,000 head processed in the same week last year.

Sheep prices remain very firm, supported by minimal supply and demand that, although limited, is competing for the few remaining lots available. Lambs are trading at US$ 6.20–6.25/kg carcass weight, while adult sheep are quoted at around US$ 5.20/kg.

Argentina will be able to resume exports of fresh poultry meat to the European Union as of August 17, around one year after access was suspended following an avian influenza outbreak. During that period, only prepared and cooked products remained eligible.

Argentina’s president opened the 138th Palermo Rural Exhibition on Sunday without the immediate announcement producers had been expecting, but with a medium-term promise: to lower export duties as other export sectors in the country expand.

Although President Javier Milei made no new announcement on lower export taxes, his speech at the closing of the Palermo Rural Exhibition was well received by an audience made up mainly of breeders and livestock producers, who are currently enjoying good profitability after several difficult years.

Although some references showed increases of Ar$ 50 per kilo, most business remained at the previous week’s levels.

The Paraguayan cattle market regained strength over the past week, with limited supply and short bookings at virtually all plants.

A trader told World Beef Report (WBR) that the market is “firm”, with current list prices at US$ 5.00–5.05/kg for regular males and heifers. Bonuses of 3% to 5% lift “regular business” to US$ 5.15–5.20/kg, a nominal record high for the country.

USDA announced a phased reopening of southern cattle ports beginning Aug. 24, contingent on Mexico's adherence to the Joint Action Plan. The Douglas, Ariz., port — which borders the Mexican state of Sonora — will be the first to reopen, with Santa Teresa and Columbus, N.M., to follow depending on progress. Every animal entering the US will undergo a full USDA inspection for New World screwworm (NWS).

The USDA’s announcement that live cattle imports from Mexico will partially resume as of August 24 is unlikely to alter the balance of the US market in the short term, although it could help temper bullish price expectations, a trader told WBR.

USDA's latest Cattle Inventory and Cattle on Feed reports suggest the cyclical low is likely behind the industry, with total cattle and calves edging up 0.2% to 94.2 million head. Beef cows, however, came in slightly lower at 28.5 million head, down 1%, while beef replacement heifers rose 3% to 3.8 million head, a modest signal of retention, but far from a decisive expansion.

Cattle on feed totaled 11.4 million head, up 2%, while placements fell 3% to 1.40 million head and marketings dropped 3% to 1.66 million, the lowest June figure since the series began in 1996.

A new economic analysis commissioned by the Meat Institute finds that reinstating mandatory country-of-origin labeling for beef and pork would cost the US supply chain US$ 1.02 billion in the first year, reaching US$ 10.1 billion over a decade. Compliance costs, covering tracking, recordkeeping, product segregation and labeling, would fall primarily on packers, processors and retailers, but would largely be passed through to consumers in the form of higher food prices.

BTG Pactual expects Tyson Foods to report a difficult fiscal second quarter, with its beef division posting an operating loss as the US cattle cycle goes through its worst downturn in decades. The situation has already led JBS, Tyson and Cargill to close plants in the country.

Market participants are expected to assess the implications of developments over the weekend, with geopolitical events adding fresh uncertainty to commodity markets. The AG Center reported that a pause in the conflict in the Middle East pushed oil and grain prices sharply lower in overnight trading, while packers showed renewed buying interest by bidding US$/cwt 231 for cattle on Saturday.

Compared to the last market test, US beef import prices for Australian and New Zealand beef were mostly steady, while South American prices moved sharply higher on limited trading activity. Overall trade ranged from very slow to slow.

Turkey, the main destination for live cattle exports from Mercosur, continues to record high finished cattle prices, although they remain below the peaks reached early this year.

Meat & Livestock Australia (MLA) confirmed that Australian beef remains exempt from the new 12.5% tariff the US Government announced on all Australian exports, maintaining the 0% arrangement established in November 2025. Sheepmeat and goatmeat, however, will be subject to the new measures, creating additional challenges for exporters and buyers in Australia's largest red meat export market.

Australian beef exports hit South Korea's 2026 safeguard quota of 196,000t on July 22, triggering an immediate out-of-quota tariff of 24% for the remainder of the year, up from the current 5.3%.

China's Ministry of Commerce confirmed that Brazil consumed 80% of its 2026 beef import safeguard quota as of July 21, equivalent to 884,800 metric tons of its annual 1.106 million metric ton allocation.

The rush to secure a share of Brazil’s reduced quota for this year led to a sharp acceleration in imports from that origin and caused Brazilian beef to represent a high proportion of China’s arrivals in June.