The scarcity of rains marked the second consecutive week of adjustment in the values that the meat industry proposes for fat cattle. The export price of beef remains around US$ 4,100 per ton and the replacement closes the year with firm demand and prices that recover the historical ratio of the lean/fat indicator.
Instability hinders finance businesses and market formation. The slaughter increased almost 10% in the last week, although it remains low for the time, in the axis of 45 thousand heads. The year will close with around 2.4 million cattle slaughtered.
Completion of slaughter programs kosher eased the pressure on the special steers. The entries vary by plant, between 10 and 15 days – and some industries are already setting a date for January. The demand is now concentrated in cows, heifers and cattle for supply. The supply of finished cattle is limited.
Best Steers: $3.35
The value proposition fell from US$3.65 per kilo in fourth scale for the best steers at the beginning of the previous week to between US$3.30 and US$3.35 at the end of this weekwith US$3.10 per kilo for the heavy cow and US$3.20 in the heifer category.
“The one that sells is because they don’t have much forage margin to enter in January,” said Christopher Brown, director of Agro Oriental.
The stabilization of farm prices is tied to the behavior of the rains, with an eye on foreign markets, where significant improvements are not expected until well into 2023.
Fall of the steer in pesos
Added to the fall in the price of fat cattle in the second half of 2022 is the drop in the dollar, which this week broke the floor of February 2020. The value of the steer in pesos shows a vertical drop of 40% compared to all-time highs Hit in March: from $228.9 to $136.4 this week.
With an average price of $3.49 for the steer (ACG price on Monday, December 12) and a weekly average of $39.09 for the dollar in the week ending December 9, the kilo of steer in fourth scale is 27% below the $187 registered in December 2021at that time with a steer in dollars at US$4.24 and an average interbank price of $44.23.
John Samuelle
Livestock closes a year with high slaughter and income from exports.
export price
The annual average price per ton of exported beef could exceed US$5,000 for the first time. In 2022, the turnover of the meat complex will increase based on the very good values captured until September, although the volume placed will be reduced.
In the last week, the Average Income from Exports (IMEx) rose slightly, to US$ 4,107.
The volume of exported meat fell almost 6% on the same date, from 530,197 in 2021 to 498,708 in 2022. Shipments to China add up to 64%, with 318,180 tons, 6% less than in 2021. The second market for Uruguayan meat, United States, is the one that grew the most this year in volume: 9.3% to reach 72,553 tons.
The total billing for beef exports grew 10.4%, adding US$232 million to the US$2,260 million in 2021 to stand at US$2,495 million as of December 10.
The reposition
The replacement is coming to the end of the year with a minor adjustment to that of the fat manwhich in the last three months allowed the calf/steer index to recover its historical level of 1.25 after maintaining its lowest levels for a good part of the year, even with values of calves below the steer.
In Plaza Rural’s last auction of the year, this week, calves averaged US$2.36 per kilo, 8.75% more than in December 2021. Demand has exceeded supply in the last two months, helping to confirm prices.
sheep market
The sheep harvest reached its annual peak in the last week with a slaughter of 48,405, below the previous year and in a stable market, although with depressed prices of around US$3 per kilo for lamb, US$ for sheep 2.45 and the capon US$ 2.60.
The export price of sheep meat rose from US$4,398 to US$4,460 in the last week. Sheep meat is closing the year with an average price 2.6% lower than in 2021 and lower volumes placed.
The amount
17.4% is the increase that reflects the annual average price per ton of exported beef, which stands at US$ 5,003 as of December 10.
