Mercosur steer continues with a downward trend due to a weak exchange rate

Published 2024년 12월 19일

Tridge summary

The Mercosur Faxcarne Steer Index has experienced a 7% decrease over the past three weeks, with the average value of steers in the region sharply correcting downwards. The fall is primarily due to Brazil, with a drop in references in reals and a weakness in the exchange rate. Argentina's price remained stable locally, but a 1.6% drop in the exchange rate for exporters led to a 7 cent decrease to US$ 4.49 per kilo of carcass. In Uruguay, references remained stable at US$ 4.12 for special steer, while in Paraguay, the market began to react with mixed prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The average value of steers in the region again sharply corrected downwards in the week and has accumulated a 7% drop in the last three weeks. The Mercosur Faxcarne Steer Index fell 11 cents in the week to US$ 3.59 per kilo of carcass. The main bearish argument is once again Brazil, both due to a sharp drop in references in reals and the weakness of the exchange rate, which fell 0.9%. The fatted boi in the main exporting states of the country fell 18 cents in the week to US$ 3.24 per kilo of carcass, a reference exempt from the Funrural tax. It is the lowest value in nine weeks, since mid-October. In Argentina the price remained stable in the local currency, but the 1.6% drop in the exchange rate for exporters caused a 7 cent drop to US$ 4.49 per kilo ...

Source: Elagro