Weak beef prices pressure packer margins and cattle futures
The adjustment in US wholesale beef prices is limiting packers’ ability to pay for cattle and putting downward pressure on Chicago futures.
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Leading Weekly Publication in Beef and Sheep Export from Mercosur to the World. Prices, Trends, and Key Analysis for the Livestock and Meat Market
Last update 11/02/2026

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The adjustment in US wholesale beef prices is limiting packers’ ability to pay for cattle and putting downward pressure on Chicago futures.
Argentina slaughtered 1,063,992 cattle in October, down 11.6% from October 2025 and up 1.7% from September. Slaughter therefore continues to post double-digit year-on-year declines.
Export plants approved by Senacsa slaughtered 150,551 cattle in October, up 22% from September, the lowest month of the year, but down 9.3% from October 2025.

The average slaughter cattle price across Mercosur countries fell again this week, reflecting the impact of Lula da Silva’s reelection in Brazil’s presidential runoff.
The Middle East continues to seek Uruguayan sheepmeat, although trading is slow, mainly due to tight supplies.
Chile’s beef import market is stable, with smoother trading in Brazilian product and slow business with Paraguay, where rising slaughter cattle prices are squeezing exporters’ margins.

With less than two months until the EUDR takes effect, barring EU imports of products from land deforested from 2021 onward, views differ on its potential impact.
With sales for the year-end holidays largely completed, the European market remains sluggish, with importers pushing bid prices lower.
Brazilian exporters’ offers to China vary widely by cut and plant, while sellers’ asking prices remain far from buyers’ bids. “Demand is there, but the price gap is large,” an operator in China said.

Beyond the routine trading seen in the US beef import market in recent weeks, next year’s outlook remains promising from exporters’ perspective.
The international beef market faces several days of intense activity, with two events providing an opportunity to gauge US and Chinese demand and the trade outlook for 2027.
Cattle prices rose in reais for the ninth consecutive week. Finished males are approaching R$ 390/@ in São Paulo, while futures contracts are trading above R$ 400/@.
