The values of export-type steers in the region’s markets and their behavior since last week are reported.
Brazil: The fat steer pays USD2.74, nine cents less than last week due, in equal parts, to a lower domestic price and the weakening of the currency. Since the beginning of the year he has lost 75 cents, for the same two reasons. The current value repeats one observed in September, which had been the lowest in the last twelve months. The pace of exports in the first week of the month has continued at the high levels of the last two months, when it repeated the December record and then, in May, it broke it again. Its simple projection would give 230 thousand tons for this month, well above last month’s maximum of 212 thousand.
Argentina: The weighed and traced steer is worth USD3.67, five cents less in a week. While the offers in pesos from the refrigerators did not show changes, there was a jump in the value of financial dollars, which contribute to the exchange rate mix that exporters receive.
Uruguay: The export type steer is priced at USD3.76, one cent more. The market remains firm, although stabilizing in the opinion of consignees. Last week’s slaughter was 45 thousand head, 4% more than the previous week and 3% below the average of the previous ten. Exports in the first week of the month started at a slow pace, projecting 27 thousand tec, 25% less year-on-year. On the other hand, May exports were reviewed by INAC and total 40 thousand, almost tying those of the same month last year.
Paraguay: The EU suitable steer is priced at US$3.05, five cents less. The category offer is important and business outside is calm.
The price in Argentina is 22% higher than the weighted average of its neighbors, one point more than last week, despite having dropped in price, and the maximum gap between them is 37%, four points more.
How and why the Novillo Mercosur weekly report is prepared: The purpose of this information is to analyze the competitiveness of meat from each of the Mercosur countries, which is interesting due to the number of external markets they share. Dadaist 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 ranchers.although they are valid for those of other countries in the block.
Extra Mercosur prices
United States: 6.64
European Union: 5.66
In the US, last week’s price was maintained and is still only 1% below the nominal record achieved just two weeks ago.
In Europe there was a drop of ten cents, mainly due to the weakening of the euro. The inter-Atlantic gap reaches almost one dollar, which has not been seen since the end of March.
