Brazilian Congress discussed a potential tax policy change that may limit the ability of exporters and processors to monetize tax credits. The policy may decrease demand for Brazilian hides, according to market participants.

Brazil
Brazilian President Luiz Inacio Lula da Silva sent an executive order to Congress on June 4 to limit the ability of Brazilian exporters and processors to monetize tax credits. Discussions are expected to continue because of large opposition to the policy. According to one market participant, the policy may decrease demand for Brazilian hides and increase that for US hides instead due to less competition for the commodity.

A few market participants reported that cattle slaughter remained firm throughout the week ending June 13, adding price pressure to Brazilian wet blue TR1 hide prices but tracked at $0.60 per sq. ft, unchanged from the week prior.

Argentina

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