The prices for export-type steers in the block’s markets have behaved as follows since last week.
Argentina: The weighed and traced steer is paid USD3.67, at the exchange rate that exporters and the export right have, two cents more than seven days ago. A minimal increase in the average of refrigerator offers exceeded the evolution of the dollar blend (80% official exchange rate and 20% financial rates) during the week.
Brazil: the fat steer is trading at USD2.78, three cents more. The 1.5% increase in the price in reals was offset by a third by the devaluation, with the dollar going from 5.40 to 5.43, a level not seen in almost two years. Exports in the third week picked up their pace and continue to reach almost 200 thousand tons for the month.
Uruguay: The export-type steer is worth USD3.80, with an increase of two cents. With stable slaughter, consignees continue to rate the market as firm. Last week’s slaughter was 45 thousand heads, 2% less than the previous week and 3% less than the average of the previous ten. There is no information on shipments abroad for the third week.
Paraguay: The price of suitable EU steers remains at USD3. Producers are very unhappy about the recent depreciation of cattle, which they cannot justify by the market situation.
The price in Argentina is 21% above the weighted average of its neighbors, one point less in the week, and the maximum gap between them remains at 37%.
How and why the Novillo Mercosur weekly report is prepared: This information is intended to analyze the competitiveness of meat from each of the Mercosur countries, which is interesting due to the number of external markets they share. the regulatory situation in Argentina, which is the only one with an exchange gap and export taxes, the conversion of the price to dollars is done with the exchange rate provided by the new temporary currency settlement system and the charge of 9% export duties. It consists of being able to market 80% of the currencies through the official market and 20% through the MEP or the CCL, with a considerably higher valuation. These numbers are not intended to reflect the income of Argentine cattle farmers.although they are valid for those of other countries in the block.
Extra Mercosur prices
The values of finished steers in selected markets are indicated, expressed in USD per kilo carcass.
United States: 6.86
European Union: 5.68
In the US, there was an increase of twelve cents in the week, marking a new historical record (nominal). The most recent high had also been surpassed last week. The contraction in supply manages to keep prices at unusual levels.
In Europe, there was a slight increase in domestic prices, which was partially offset by the fall of the euro.
