The farm and export markets run at two speeds. The price of fat cattle bottomed out last week and, supported by the improving pasture outlook, rebounded 20-30 cents after falling more than two dollars in two months. For special steers, the axis is located at US$ 3.40 and for the best finished animals, up to US$ 3.50 per kilo. The cow goes from US$3 to US$3.10. The revival began to copy this trend in this week’s screen auctions with the relief represented by past rains and those forecast for this weekend.
The export price exposed this week the adjustment that operators and industrialists had been warning of in recent months and fell to its lowest level since September 2021.
The average ton exported was US$4,224 in the last week, a sharp drop of 12% according to preliminary data published by the National Meat Institute (INAC).
This decrease brought the average of the last 30 days to US$ 4,604 per ton. October registered the lowest monthly average of 2022 with US$4,721, almost 14% less than the annual peak of US$5,475 in May.
The Chinese market is the one that most influences by volume, but the incidence of Europe is increasingly noticeable, with values for Hilton meats falling from US$14,000 to less than US$9,000 per ton: 35% less. So far this year, the average IMEx is US$ 5,081, 21% higher than a year ago.
In ovine meat, a drop is also consolidated. Although there was a moderate rebound, in the last 30 moving days it fell to US$4,582. And in October it averaged $4,719, also the lowest monthly record of the year.
Price of exported meat
Irregular rhythm of work
Sector operators warn of greater interest from the industry for fat grazing cattle and entries have been shortened to eight and 10 days.
Gustavo Basso, director of Gustavo Basso Rural Businesses, maintains that a floor has already been reached and a balance is beginning to be sought a few cents higher.
Cattle slaughter closed October with 194,033 head –the highest figure since June– and began November with a weekly drop of 9%. The rebound of the previous week to exceed 50 thousand heads after five months was short-lived and the latest data was 45,794 industrialized cattle, 55% steers.
With the 481 quota window active, the entry of farmyard animals predominated in the industries, according to data from the Association of Livestock Shippers (ACG).
Between January and October, the corral represented 14.6% of the cattle slaughtered, with 286,000 heads. Participation is greater than a year ago, when it reached 12%.
By categories, 25% of the slaughtered steers are free-range, according to the registered running of the bulls authorized for quota 481.
In the annual accumulated figure, the total volume of slaughter is 6.7% lower than last year in number of heads (2.05 million compared to 2.21 million) and 26% above the year 2020 to this date (1.63 millions).
The year 2022 would close at 2.45 million heads, about 200 thousand less than 2021.
Replacement
The replacement confirmed the change in the tone of cattle prices and adjusted upwards in almost all categories in the Plaza Rural auction on Tuesday, November 8.
Demand firmed up, with bids on almost all lots and total sales in most categories. “The rains changed the mood and invigorated the market,” said Christopher Brown, director of the firm Agro Oriental.
Calves averaged US$ 2.36, with special interest in calves from 140 to 180 kilos, which corrected 12% upwards, and good performances were seen in calves, heifers and calves.
In the auction of Lot 21, on the other hand, the calves of up to 140 kilos stood out, rising almost 13% in value compared to the October auction of the office consortium.
In wool, with an abundant offer, in the prelude to the harvest there was a break in the international market that is transferred to business in the domestic market.
The export values have recorded adjustments. And a stalled market is reflected, especially for the heaviest categories, with values that seem to be finding a floor.
Lamb is priced around US$3.17, sheep US$3.13, capons US$2.95 and ewes US$2.68.
Sheep slaughter fell again in the last week, closing at 30,219 sheep according to INAC data. The slaughter of 152 thousand heads in October was 2.6% below that of October 2021.
