Trade with the Chinese market continues a path of gradual recovery in both prices and demand, although — for now — there have been none of the sharp weekly jumps seen in previous periods despite the exhaustion of the quotas of two of its main suppliers, Australia and Brazil.

An exporter said Argentine Hilton rump & loin strengthened to US$ 19,500/t FOB, leaving behind references of US$ 19,000/t seen in the middle of last week. A European importer confirmed deals from Argentina at US$ 19,000-19,500/t FOB. Other sources quoted US$ 19,200/t FOB last week.

Some inquiries have begun to emerge from US importers, suggesting a possible recovery in buying interest after several weeks of downward pressure on prices.

For now, however, offered prices remain “far” from the levels sought by the Brazilian industry. Mexico, by contrast, showed opportunities for round cuts. One processor reported deals for topside at US$ 6,800/t and flat at US$ 6,700/t.

A Brazilian processor described the Russian market as showing “little buying interest” and said importers that have already covered their needs are likely to remain out of the market for the time being.

A Chilean importer warned that the logistics situation in the Andes remains “very critical,” although a partial reopening of the Cristo Redentor Integrated System began on Tuesday, August 18, after being closed for a month.

Fiscal weakness amid an election year weighed on the Brazilian currency this week, with the real falling to its weakest level against the US dollar since March.

The moderate increase in finished male prices in reais was offset by a 1.6% decline in the Brazilian currency, which dragged down the regional average. The WBR Mercosur Steer Index fell 1 cent over the week to US$ 4.87 per kg carcass weight, ending five consecutive weeks of gains.

The average export value of beef maintained the downward trend that began in mid-May.

MBRF’s South American beef business posted strong revenue growth in the second quarter of 2026, supported by both higher sales volumes and stronger sales values, although rising costs prevented an improvement in margins.

MBRF closed the second quarter of 2026 with net revenue of R$ 40.7 billion, up 4.9% from the same period last year, while EBITDA increased 5.4% to R$ 3.2 billion.

Minerva Foods reported consolidated gross revenue of R$ 15.1 billion in the second quarter of 2026, up 2.4% from the same period last year. However, its main profitability indicators deteriorated year-on-year.

The geographic diversification of its operations and its ability to redirect products among different destinations were two of the points highlighted by Minerva Foods’ management when presenting its second-quarter 2026 results.

With Brazil’s China beef quota virtually exhausted and uncertainty surrounding access to the European market, Minerva Foods is pursuing two strategies simultaneously: expanding feedlot operations in Paraguay and Argentina to secure cattle supplies, and building inventories in the US and China to continue selling into those markets even after quotas are filled. CFO Edison Ticle said the company has never held inventories as high as current levels.

José Batista Júnior, known as Junior Friboi, announced that his JBJ Agropecuária group will acquire additional meatpacking plants to expand Prima Foods, the company’s meat processing arm.

The slaughter cattle market remains firm in Brazil’s main cattle-producing regions, but the weaker domestic demand typically seen during the second half of the month, together with a slower export pace, has moderated price increases and the pace of business.

Prices for breeding and feeder cattle categories posted very significant increases of between 26% and 43% over the past year, with breeding categories generally showing larger percentage gains than males and feeder cattle.

MBRF’s global CEO Miguel Gularte stressed that the plant accounts for less than 30% of the group’s production capacity in Uruguay and that investments made there were not specifically targeted at the Chinese market.

Gross revenue from Minerva Foods’ operations in Uruguay reached R$ 6.588 billion in the 12 months through June, up 39.7% from the previous comparable period, despite sales volume remaining virtually unchanged.

Something that would have been difficult to imagine not long ago has now happened: special heavy steers, grassfed, are sold at US$ 6.00 per kg carcass weight, and even a few cents more for lots with no loading complications.

Cattle slaughter posted a moderate increase last week, returning to around 40,000 head, although activity remains clearly below year-ago levels.

INAC reported that 40,139 cattle were slaughtered in the week ended August 15, 1,245 head more than in the previous one, an increase of 3%, but nearly 6,000 head below the same week last year.

The slaughter sheep market remains unchanged, with prices gradually trending higher and supplies minimal. Lambs are trading at up to US$ 6.30 per kg, while ewes are at US$ 5.20.

According to US Customs data, as of last Monday Argentina had filled 15,519 tons of its traditional beef quota, equivalent to 77.6% of the annual allocation. It had also filled 93.9% of the third quarterly tranche of the additional 2026 quota of 20,000 tons, or 18,788 tons.

Argentina’s buffalo herd has reached 205,000 head, up 25.3% since 2023, according to the Agriculture Secretariat. The expansion of buffalo production is concentrated in northeastern Argentina (NEA): 83% of the country’s herd is in Corrientes, Formosa and Chaco, where the species is well suited to environments that present limitations for other livestock activities.

The United States ordered the recall of a 13.44-ton (29,628-pound) shipment of beef from Argentina after determining that a mandatory import reinspection had been skipped before the products were distributed.

Prices for export cattle remained at the levels reached the previous week. Higher-quality steers, crossbred with British breeds, continued to trade in a range of Ar$ 7,900-8,200 per kg carcass weight, while zebu-cross steers were quoted at Ar$ 7,600-7,900 per kg.

Cow prices also remained stable. Better-quality cows were around Ar$ 6,500-6,900 per kg carcass weight, while “China cows,” used for canning and manufacturing, continued in a range of Ar$ 5,000-5,800 per kg.

Gross revenue from Minerva Foods’ operations in Paraguay reached R$ 1.759 billion in the second quarter of 2026, up 12.6% from the same period last year, despite a sharp contraction in sales volume.

Cattle prices in Paraguay remain firm and at record levels in current US dollar terms.

Tight cattle supplies and firm beef demand will continue to support prices in the United States, where production is expected to decline this year and next and could remain constrained through 2028, according to David Anderson, economist with Texas A&M AgriLife Extension.

The restructuring cuts roughly 20% of the company’s slaughter capacity and is expected to benefit margins at competitors, including Brazil’s MBRF and JBS, as well as US-based Cargill.

The National Cattlemen’s Beef Association (NCBA) expressed concern over Tyson Foods’ decision to close its beef processing plant in Joslin, Illinois, warning about the impact on cattle producers, employees and rural communities in the US Midwest.

Peter Navarro, senior White House adviser for Trade and Manufacturing, accused the four largest US meatpackers of controlling 85% of the country’s beef processing and operating as a cartel. The statement is particularly significant given that it came from one of the main architects of the Trump administration’s trade policy.

Adjustments to US beef processing capacity will not be felt immediately, as plant closures and cattle movements to other facilities take time. Some cattle will need to be redirected to new destinations, potentially increasing freight costs. Meanwhile, supplies of finished cattle are expected to remain tight through the end of this year and into 2027, according to The AG Center.

Compared to the prior market test, US beef import prices were mostly moderately lower, with some instances steady to weak.

Joaquín Labella, who co-founded the company with Portugal’s Francisco Roque de Pino, said on The Landcast podcast that the company is already preparing to enter Argentina by late August and that its long-term goal is to become the world’s leading grass-fed cattle finishing company.

The European Union’s cattle herd fell to a record low of 71.58 million head in 2025, according to data published by Eurostat, after declining 0.4% over the year and 9.7% over the past decade.

The Norwegian Food Safety Authority (Mattilsynet) will suspend imports of meat and meat products from Brazil as of September 3, 2026, after removing the South American country from its list of authorized suppliers for failing to guarantee compliance with European Union rules on the use of antimicrobials in animal production.

Australian feedlots closed the June quarter with a new record of 1.66 million head on feed, up 30,000 head or 1.8% on the previous quarter and 81,000 head above the same period last year. National feedlot capacity also hit a new high of 1.795 million head, while utilization held at 92.5%, near the practical ceiling for commercial operations given pen cleaning, maintenance and other requirements.

Preliminary July data released by GACC confirm expectations of a moderation in China’s beef import volumes.

China is importing less sheepmeat this year than last, mainly due to reduced supply from its main suppliers.

Imported beef stocks in China showed signs of declining in July, a trend that will almost certainly become more pronounced this month due to the sharp drop in arrivals from Brazil and Australia after both countries filled their respective quotas.

In the first half year, the output of pork, beef, mutton and poultry was 50.50 million tons, up by 4.3% year on year.

Brazilian beef exports to the Philippines increased 34.6% in the first half of the year to 35,900 tons, generating revenue of US$ 162.4 million, up 38.9% year on year.

Abiec projects annual shipments at between 80,000 and 96,000 tons, supported by the country’s economic growth and increased purchasing power, particularly among younger consumers. Brazil accounted for 52.2% of total Philippine beef imports in the first half of the year.