Mercosur steer drops below the US$ 4 mark

The average price of steers for slaughter in Mercosur countries fell for the second consecutive week, dropping below the US$ 4 benchmark that had held for the previous two weeks. The WBR Mercosur Steer Index declined by 3 cents on the week to US$ 3.98 per kilo carcass weight, mainly impacted by falling slaughter cattle prices in Brazil and a significant depreciation of the Argentine peso.

In Brazil, the fat male (boi gordo) fell by 3 cents to US$ 3.63 per kilo carcass weight (excluding the Funrural tax), due to lower prices in Brazilian reals.

In Argentina, export steer prices rose in Argentine pesos, but this was more than offset by a 5.3% depreciation of the exchange rate during the week. Including the 6.75% export tax on steer beef, the reference price fell by 19 cents to US$ 4.50 per kilo carcass weight.

Paraguay moved against the trend seen in the region’s two main partners, with a weekly increase of around 25 cents to US$ 3.75 per kilo carcass weight for slaughter males.

In Uruguay, the market appears to be stabilizing. The reference price for top-quality steers remains at US$ 5.10-5.15 per kilo.