Chinese demand remains active, although the market gained a new source of uncertainty after Uruguay expressed its willingness to transfer part of its unused quota to Brazil and Australia. The proposal still requires approval from China, which has the authority to decide on any reallocation of the quotas (see more under Uruguay).

The strong recovery in prices for higher-value chilled Hilton cuts appears to have reached something of a plateau over the past week, although some regional exporters are relying on tight supplies to seek further increases in forward selling prices.

The outlook in the United States is significantly weaker. A trader described the market as “dead,” with no buying interest and depressed prices over the past week. For Argentina, the exhaustion of its quota and the resulting return of import duties have also virtually removed the United States as a commercial alternative.

A Brazilian exporter reported “somewhat stronger demand” from the Middle East, particularly Saudi Arabia. The source concluded topside deals at US$ 7,250 per ton CIF Jeddah.

A Brazilian industry source said bids were received at US$ 6,180 per ton for chuck & blade shipped to Vladivostok and at US$ 7,100-7,200 for topside.

Some market participants said Chile was left with inventories following last weekend’s national holidays, although others offered the opposite assessment.

Export industry sources told World Beef Report (WBR) that Israel’s Rabbinate authorized kosher teams to depart for the region on October 18, meaning they will begin operating toward the end of next month.

The average slaughter cattle price in Mercosur increased this week, driven by higher prices in Brazil and Paraguay. The WBR Mercosur Steer Index rose by 5 cents to US$ 4.87 per kg carcass weight.

Brazil’s average beef export price continued to rise in the third week of September, reaching its highest level since the final week of June, 12 weeks earlier.

Roberto Perosa ruled out a resolution before year-end and said the strategy has two stages: first, securing Brazil’s reinstatement on the list of countries authorized to export to the EU, and then negotiating a transition period to resume trade.

The retention of females and reduced cattle availability will make 2027 the second consecutive year of declining production, although exports are expected to continue growing on strong global demand.

The same pattern that caused Brazilian beef sales to China to collapse in the second half of 2026 could recur next year, prompting debate within the industry over whether to allocate the quota among companies.

With the EU ban in effect since September 3, Brazil’s agricultural confederation brought together embassy representatives and Ministry of Agriculture officials to explain the country’s technical position on antimicrobial use.

The agreement, finalized on September 15, brings together the companies’ leather assets in Brazil and abroad under a new company with equal ownership, while excluding several assets belonging to both parties.

The European Union approved the sanitary measures submitted by Brazil to resume imports of Brazilian poultry meat, following a mission that assessed processing plants and the country’s animal health system.

Finished cattle prices rose at a faster pace over the past week, under pressure from tight supplies that are expected to decline further.

Uruguay is willing to allow Brazil and Australia to use part of the beef volume it does not expect to ship this year under its 324,000-ton quota for the Chinese market. Deputy Foreign Minister Valeria Csukasi told La Diaria that the possibility arose after inquiries from both countries and that any reallocation would require approval from the Chinese authorities.

The National Livestock Information System (SNIG) confirmed that Uruguay’s cattle herd increased to 11.84 million head as of June 30, 2026, nearly 400,000 more than a year earlier, according to preliminary data released by the Ministry of Livestock.

Uruguay’s sheep flock decreased by 3.9% year-on-year to 4,566,892 head, compared with 4,752,400 in 2025, according to SNIG data as of June 30.

The value of INAC’s Type Steer 2.0 rose 0.3% in August to US$ 2,117 per head, a new high for the series, which began in January 2022. The cattle value climbed 3% to a record US$ 1,745, while Industrial Added Value fell 11% to US$ 372. The industry’s share narrowed to 18%, its lowest since February.

The total value generated by the sale of all products from a Type Steer 2.0 after processing increased by 0.3% in August, or US$ 7 per head, surpassing the previous nominal high of US$ 2,115 set in May.

The slaughter cattle market remains broadly unchanged from last week: demand is very limited and seeking to lower purchase prices but faces supplies that remain at minimal levels.

Cattle slaughter fell sharply again last week, with only 20 plants processing cattle. Just nine of them slaughtered more than 1,000 head each. It was the third lowest weekly slaughter in the year so far.

The market for slaughter sheep continues to strengthen, with very limited supplies and sustained buying interest, although few plants are purchasing significant volumes.

Argentina exported 72,876 tons of beef in August, measured in shipment weight, up 11.1% from July and 0.4% from a year earlier. This was the highest monthly volume since at least January 2010.

Beef shipments totaled 476,700 tons shipment weight in January-August, up 5.9% from the same period in 2025.

Sales to China recovered in August. The Asian market accounted for 59.1% of Argentina’s beef exports and 59.7% of shipments in January-August.

With Brazil’s beef quota in China exhausted, August brought Argentina’s highest monthly shipments of boneless frozen beef this year, at 24,969 tons. Shipments of bone-in beef and bones from deboning reached an all-time monthly record of 18,097 tons.

Exports to the United States have declined since their June peak. In August, shipments totaled 538 tons of chilled cuts, the lowest monthly volume this year, and 9,783 tons of frozen beef.

Argentina exported a record 3,083 tons of chilled cuts to Israel in August, along with 4,072 tons of frozen cuts, the second-highest monthly volume of frozen cuts in two years.

Shipments to Europe recovered in August for both chilled and frozen cuts.

Export steer prices remained broadly in line with the previous week, although values converged toward the upper end of their ranges. The best British-breed crossbred steers traded at Ar$ 7,900–8,100 per kilogram carcass weight, while prices for zebu crosses recovered to around Ar$ 7,600–7,900 per kilogram carcass weight.

Cattle supplies remain extremely tight, while rainfall continues to disrupt truck loading.

Quoted prices stand at US$ 5.20 per kg for standard males, up 5 cents from seven days earlier, and US$ 5.00 for cows. However, “it is extremely difficult to secure cattle at those prices” because producers are seeking higher values, according to an industry source.

The US cattle industry is beginning to move into a new phase of the cattle cycle after several years of liquidation, but meaningful herd rebuilding has yet to begin. Tight supplies could therefore persist for several more years, keeping cattle prices supported.

Cattle entering US feedlots declined sharply again in August, while the total on-feed inventory remained slightly above year-ago levels. Marketings also fell to a record low for the month, according to the latest USDA Cattle on Feed report.

The loss of USDA cash cattle price reporting has created an information gap and is beginning to change weekly trading patterns. Last week, two major cattle regions delayed all transactions until the weekend, while fed cattle supplies remain tight.

Weak domestic values continued to pressure the US imported beef market, with trading activity remaining slow to moderate. Tight supplies from Oceania contrasted with increased South American business, particularly for October-November delivery.

European Union beef supplies will tighten further in 2027 due to another decline in domestic production and a sharp reduction in imports, according to the annual report issued by the USDA office in The Hague.

The USDA office in The Hague forecast European Union live cattle exports to fall from 761,000 head in 2025 to 600,000 in 2026 and remain at that level in 2027.

A decision excluding bovine leather from the EU Deforestation Regulation (EUDR) was published in the Official Journal of the European Union on September 17, bringing years of lobbying by Brazil’s tanning industry before European authorities to a close.

Meat & Livestock Australia (MLA) forecast Australian beef production to exceed 3 million tons carcass weight for the first time in 2026, driven by slaughter of 9.6 million head, an average carcass weight of 313 kilograms and historically high feedlot turn-off.

China imported around 208,000 tons of beef in August, down 18.9% year-on-year, or 48,500 tons, and around 7,000 tons below the July figure, according to GACC data reported by OIG+X.

China’s sheepmeat imports totaled 20,534 tons in August, worth US$ 102.9 million.

China rejected 147.3 tons of beef in August, distributed across 53 consignments from five countries. Brazil and Argentina accounted for the largest volumes, jointly representing 78% of the total.