Mercosur cattle prices reach historic high amid regional supply shifts

Beef prices in the Mercosur region have reached a new historic high, with the Faxcarne index hitting US$ 5.07 per kilogram of carcass as of October 20, 2026. The upward trend is driven by rising prices in Brazil, Paraguay, and Uruguay, while Argentina has seen a moderate decline due to exchange rate fluctuations.

In Brazil, the cattle market is experiencing high demand due to limited supply. In São Paulo, the Cepea/Esalq indicator for fat cattle reached R$ 380.70 per arroba, marking a nearly 20% increase since the end of 2025. Short slaughter schedules and restricted supply of animals ready for slaughter are sustaining high prices across various Brazilian states, including Mato Grosso do Sul and Minas Gerais.

In the commodities market, soybean prices in Chicago saw a slight recovery, rising 0.62% to US$ 12.53 per bushel, supported by a significant increase in US exports to China. Conversely, corn prices continue to face downward pressure due to record Brazilian production and a decline in international prices.