Argentina pushes the Mercosur steer price higher

The average slaughter cattle value in the region snapped a two week correction and moved up, thanks chiefly to recovering prices in Argentina. The WBR Mercosur Steer Index gained 8 cents on the week to US$ 4.00 per kg carcass weight.

The main bullish factor was Argentina, where a 4.5 % appreciation of the exchange rate combined with higher export steer prices in pesos. Including the 6.75 % export duty on steer beef, the reference price climbed 35 cents to US$ 4.88 per kg.

Brazil showed two opposing forces: finished male (boi gordo) prices continued to ease in reais, but the currency strengthened 1.9 % over the week. The net result was a decline of just 1 cent to US$ 3.54 per kg, on 30 day terms and excluding the Funrural tax.

In Uruguay the market remains firm and rising; prime heavy steers are quoted at US$ 4.70 per kg.

Paraguay’s market is also firm despite a larger offering. Finished steers added 5 cents to US$ 4.15 per kg.