3 March 2023

The suspension of exports from Brazil to China starting last Thursday after confirming the atypical case of mad cow pushed down the prices of cattle for slaughter in Brazil and Paraguay. The Mercosur Steer Faxmeat Index lost 8 cents in the week to US$ 3.61 per kilo carcass, leaving behind four consecutive weeks of gains.

In Brazil, the market has not yet fully formed after the shock that the news implied, but prices are logically trending downward. The average value in the main exporting states fell 10 cents to US$3.20 per kilo carcass.

The impact on prices in Paraguay was immediate. Slaughter male lost 35-40 cents at US$3.20 per kilo carcass.

In Argentina, prices stabilized after the very intense appreciation of 38% from the second week of the year to last week. The references in Argentine pesos remained unchanged during the week, while in dollars the export steer fell 9 cents to US$ 4.32 per kilo carcass (including 9% export taxes).

In Uruguay, the trend of price recovery is accentuated with prices for special export steers, which are very scarce, between US$3.90 and US$4.00 per kilo carcass.

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