China has been “gradually firming,” with new business concluded over the past week and a gradual improvement in prices for some cuts, a regional trader told World Beef Report (WBR).

As a reference, the source reported deals from Uruguay for 80 VL trimmings at US$4,750 per ton, 97 VL flat at US$7,900, 5+4+4 rib plate at US$5,150, bone-in brisket at US$4,900 and bone-in navel plate at US$4,950.

A Paraguayan trader said international business remains “fairly quiet,” with widespread delays of two to three weeks in shipments agreed during June and early July. Regarding Europe, the source said inquiries have begun to emerge to take advantage of the space left by Brazil following the new restrictions, particularly for butt cuts. However, Paraguay has “little traceable cattle,” meaning the additional volume it can direct to that market will be limited. “The prices are not excellent, but they provide some support,” the trader said.

The US market remains “very weak,” with little activity, a situation an Argentine trader attributed mainly to the northern hemisphere summer season.

The source explained to WBR that August is usually a transition month, with lower consumption due to vacations, although some signs of recovery are beginning to emerge in the domestic market.

The MENA region showed little activity over the past week, affected by the military confrontation between the US and Iran. In Russia, a Uruguayan exporter said the market was only active for liver, with a reference of US$2,050 per ton FOB.

Paraguayan sources said Chile showed “a slight improvement” in prices. One exporter said business was concluded last week at US$7,400 per ton CFR for the 20-cut set, compared with US$7,200 in previous weeks.

Although Brazil might have been expected to be less active in import demand due to the restrictions it faces in export markets such as China and Europe, a Paraguayan trader said the market is “more active than in the first half.”

Mercosur has failed to reach an agreement on the allocation of the quota in force between May and December this year, while the deadline to decide the 2027 distribution expires at the end of September, amid the worst diplomatic crisis between Argentina and Brazil in decades.

The average value of slaughter cattle in Mercosur countries rose for a fourth consecutive week and reached its highest level in seven weeks, since mid-June. The WBR Mercosur Steer Index increased 7 cents to US$4.84 per kilo carcass weight, accumulating a 17-cent recovery over the past four weeks.

Itaú BBA projects shipments of 3.9 million tons, below the 2025 record, as meatpackers are already adjusting production and analysts warn that the dispute is becoming increasingly geopolitical rather than commercial.

The Brazilian government is considering turning to the World Trade Organization (WTO) to challenge the European Union’s decision to remove the country from the list of approved suppliers of meat and meat products as of September 3.

The European Union was the highest-paying destination for Mato Grosso beef exports during the first half of 2026. According to Foreign Trade Secretariat (Secex) data compiled by the Mato Grosso Meat Institute (Imac), the European bloc paid up to 40% higher than those offered by other major markets, consolidating its position as the highest-value destination for the state’s beef.

JBS signed a memorandum of understanding with South Korean company Highland Foods during the Brazil-South Korea Business Forum held in São Paulo. According to ApexBrasil, the agreement is intended to strengthen long-term commercial cooperation, expand market opportunities and promote innovation at a time when both countries are seeking to deepen their economic ties.

Finished cattle prices remain firm due to tight supplies and strong exports, but weaker consumer purchasing power is limiting the transmission of higher prices along the supply chain.

Boi gordo prices in Brazil remain supported by tight supplies of finished animals and the strong performance of beef exports, but Cepea sees a clear ceiling for further increases: domestic demand.

Tight supply remains the main driver of Brazil’s finished cattle market, keeping demand firm and prices rising for a third consecutive week.

The emergence of milk-tooth steers is already a fact: never have so many steers this young been slaughtered in a first half. With the 2-4 tooth category beginning to grow as the year progresses, 2026 is expected to end with the youngest steer slaughter profile in the series.

Sustained beef production, with slaughter running at around 45,000 head per week between mid-June and the first half of July, led to an increase in beef export volumes.

Frozen beef exports to China totaled 81,402 tons in the year through July, the lowest volume for the period since 2016, 10 years ago. Compared with the 2022 peak, the decline is slightly above 50%.

Uruguayan frozen boneless beef exports fell 15% in the year through July. The US remained the leading destination in this segment, with 60,600 tons, despite a 12% year-on-year decline in volume.

Although they continue to run significantly below last year’s levels, Uruguayan beef exports to the European Union showed a slight upward trend in July, both for chilled and frozen beef.

The General Directorate of Livestock Services (DGSG) of Uruguay’s Ministry of Livestock, Agriculture and Fisheries (MGAP) published the results of the National Biological Residue Program (PNRB) in a statement aimed at providing greater transparency on the operation of the control system for residues of veterinary medicines, pesticides and contaminants in products of animal origin.

The upward trend in slaughter cattle prices persists, supported mainly by tight supplies as well as firm demand from international markets.

As usually happens when supply is very limited, the price range has narrowed. “Anything available that can be loaded is reaching similar prices,” an intermediary said yesterday. Rains continued to complicate loadings, adding further upward pressure to prices.

Cattle slaughter remained at levels similar to previous weeks, but production for the quota window was reflected in the composition, with cows accounting for a small share of the total.

INAC reported that 42,548 cattle were slaughtered in the week to August 1, 2,800 more than in the previous week, an increase of 7%, but 10% below the more than 47,000 processed in the same week last year.

The sheepmeat market remains on the persistent upward trend that has led it to set new records almost every week. Trading is minimal because supply is virtually nonexistent, and the few animals that become available command strong prices.

A nationwide strike by maritime pilots —specialists who guide ship captains during arrivals, departures and maneuvers in ports and complex waterways— left around 140 merchant vessels unable to operate in Argentina following the publication of a decree deregulating pilotage services.

According to data from sanitary authority Senasa, cattle inventories at feedlots totaled 2.13 million head as of August 1, 2026, up 5% from a year earlier and only 39,000 head below the previous month and 50,000 below the record set in May.

According to US Customs data, Argentina ended July 2026 having used 14,492 tons of its traditional annual beef quota, equivalent to 72.5% of the total.

Export cattle prices were unchanged from the previous week. British-breed crossbred steers with better beef quality remained in a range of Ar$7,900-8,100 per kilo carcass weight, while zebu-cross steers continued to trade at around Ar$7,600-7,900 per kilo carcass weight.

Paraguay’s export meatpacking plants slaughtered 190,839 cattle in July, the highest number in a year, since July 2025, and more than 18,000 head above the previous month.

The days when Chile accounted for 40% or more of Paraguay’s beef exports appear to be over. The emergence of other markets eager for the product, together with strong competition from Brazil in the Chilean market, has reduced Chile’s share to around one in every four kilos shipped.

This week, the Republic of Türkiye is carrying out an official audit covering 11 beef export establishments seeking approval to supply that market.

September is shaping up to be a month of lower activity for Paraguay’s meatpacking industry due to the combined impact of the kosher crews’ recess, the seasonal slowdown in Chilean demand once purchases for the national holiday celebrations are completed, and tight cattle supplies. Market operators said that, in this context, some plants could choose to reduce activity or even temporarily suspend slaughter for commercial reasons.

Brazilian group Xingu Foods, led by businessman Bruno Xavier, signed a shared-operation agreement that will let it start slaughtering around 15,000 head in August at a Grupo Concepción plant in Paraguay. The latter conglomerate has scaled back its activity amid a severe financial crisis.

The supply of finished cattle remains very limited, keeping the market at record levels.

A group of US states filed a lawsuit against the Donald Trump administration over its attempt to use Section 301 of the Trade Act of 1974 as a new legal basis for maintaining its global tariff policy, Bloomberg reported.

The US Department of Agriculture (USDA) announced that six additional meat and poultry companies have adopted the voluntary Product of USA label, which identifies products derived from animals that are born, raised, harvested, and processed entirely in the United States. The initiative is part of the Trump Administration’s strategy to help consumers identify authentically American-produced food.

The sharp decline in US cattle slaughter last week could help support beef demand and trigger the typical seasonal recovery in boxed beef prices during August. According to The AG Center, packers will need to remain active in the negotiated cash market to secure slaughter supplies, as fed cattle availability is expected to stay tight through the end of the year.

Compared with the previous market test, imported beef prices in the US were mostly sharply lower, according to the USDA weekly market report. Trading activity remained very slow, reflecting limited buying interest.

The Ulster Farmers’ Union (UFU), which represents farmers in Northern Ireland, has called on the UK government to take measures to prevent Brazilian beef, poultry and other animal products from being redirected to the British market following the European Union’s new restrictions.

The UK ended July with 84 confirmed cases of bluetongue virus serotype BTV-3 in herds and flocks in England and Wales, according to the Department for Environment, Food and Rural Affairs (Defra). Of the total, 81 cases were recorded in England and three in Wales, while Scotland and Northern Ireland reported none.

For the first time in 43 months, Australian beef exports declined compared with the same month a year earlier.

Australian live cattle exports totaled 265,659 head in the first half of 2026, down 29% from the 375,466 head shipped in the same period last year, Beef Central reported.

The Australian government will discontinue Climate Active in June 2027, citing growing market demand for real emissions reductions rather than carbon credit offsets.