The livestock market tends to consolidate a stability that began last week. The firmness is still there, intact, despite the fact that the price rise stopped, and crossing the US$ 5 per kilo for meat is a little more difficult than it was days ago. The work continues at full steam, while international demand is sustained, despite the veil of uncertainty caused by the conflict between Russia and Ukraine.
Livestock values remain at historical levels, but refrigerators took their foot off the accelerator. There is disparity between plants. The industries that days ago came to pay US$5.15 for some special bullfight at the end of this week are anchored at US$5 and with quality requirements. A little more special cattle offer appears, very slowly. There are more general good wins, which are around $4.90. The special fat cow, with a very heavy carcass, reaches US$4.85, very close to the steer.
High volumes of slaughter and a thriving external scenario –and with good values– are the main pillars of the firmness of the market, the consulted operators coincide. Tickets range from one week to 10 days.
There are no signs of major changes in this market tone as long as the work is sustained, considered Carlos de Freitas, head of the Carlos de Freitas Rural Business office. April would be the month in which a little more supply would come out, he estimated, but gradually and fluidly.
Pablo PORCIUNCULA / AFP
Cattle prices remain very firm.
The work does not loosen: 53,348
Industrial activity has clearly exceeded that at the start of 2021 and 2020. Last week, 53,348 cattle were slaughtered, 12% higher than the same week last year.
External demand continues to pull. This week exporters and representatives of the Executive Branch met to assess the consequences for the sector in Uruguay of the financial blockade against Russia in retaliation for the attack on Ukraine. Logistics and payment mechanisms are two central elements that generate uncertainty in this market, which is not among the main ones for Uruguayan meat.
Until now, there have been no major repercussions in other destinations, such as China, Europe or the US, said the manager of Marfrig Uruguay, Marcelo Secco, in Tiempo de Cambio radio Rural.
New record: US$ 5,689/ton
Last week a new record was reached in the price per ton of beef exported, of US$ 5,689with a component of Quota 481. The data published by the National Meat Institute (INAC) is preliminary and may have an adjustment, but it is still an outstanding value. The average of beef exported until February 26 is US$ 4,890almost US$1,200 (32%) above the value of a year ago.
This strength of the international market, the firmness of the fat man, and a resounding change from the forage point of view marked by the rains, give a boost to production. The replacement has a way to go, estimated De Freitas, with a skinny/fat ratio that will tend to regularize. The values continue to rise, and with this, there is a movement in the offer.
“A calf above US$3 does not seem absurd with these values,” he said.
For the calf harvest, he expects marketing without a crushing of supply.
OE
Sheep come in good demand, earning a few cents in recent weeks. Lamb is located on the US$4 per kilo axis, heavy lamb at US$4.24, lamb at US$4.21 and capons at US$4.88. There is fluidity in marketing.
Weekly slaughter was 31,591 sheep, a notable volume although below the previous week and the same week of 2021.
The export price of sheep meat recovered compared to the previous week and was US$ 5,135 per ton. The annual average reaches US$ 5,203, an interannual increase of 9%.
Firmness continues for meat in a convulsed world.
