The price adjustment for beef set by Chinese importers has not been perceived so far in the values recorded in Uruguayneither in export prices nor in fat cattle.
This week A record was reached in 20 years of records from the National Meat Institute (INAC): the exported ton averaged US$ 5,777, almost US$650 above the previous week. The average in April exceeded US$5,400 for the first time and the accumulated annual figure is US$5,018 –30% more than in 2021–.
The refrigeration industry works at full steam to supply external demand. In the first four months, China imported 40% more from Uruguay compared to 2021. The export figures up to April indicate that 20% more was exported – to all destinations – and turnover rose 56%: US$ 931 million after US$ 595 million of the initial quarter of 2021.
the work surprises
The 56,625 heads slaughtered in the last week recorded by INAC –April 23 to 30– surprised market playerswhich have been projecting a slowdown in industrial processing that has not yet materialized.
The scarcity of supply of well-finished pasture cattle is increasingly noticeable and the bid for the best cattle keeps farm prices firm at historical highs: the best steers US$5.60 per kilo, fat heifers US$5.40 and US$5.45 and fat cows US$5.30 to US$5.35 per kilo.
This “privileged situation of value” that since the beginning of the year has been affirmed for fat cattle “does not close with the reality of the world”, maintain some actors in the sector.
The composition of the slaughter is increasingly concentrated on early steers and heifers, with increasingly larger contributions from farmyard animals. Since last week, fishing began for the 481 quota window for the third quarter, taking some pressure off the free-range cattle market. Due to the high extraction, however, the relative slack in demand is not enough to prepare the cattle.
“We see well-prepared cattle becoming scarcer every week,” said Daniel de Mattos, advisor to BPU Meat; “It is going to become more complicated to maintain a high quality job with those quality levels,” he added. “We still have markets that accept animals that are underprepared,” she pointed out, which is why the demand for animals of all categories is maintained.
Uncertainty is marked in how the situation in China will evolve linked to restrictions due to the increase in covid cases, particularly in Shanghai. And the logistical impact that has been generated in one of the main ports in the world.
EO
Calves well above US$3
Steers and light calves were the categories that increased the most in the Lot 21 auction this weekmarking new references for replacement.
In the second half of the calf harvest, demand is more selective, with a marked preference for light and castrated calves over heavy calves.
In auction 174 of Lot 21, the calves averaged US$3.12 and for calves weighing less than 140 kilos, up to US$3.74 were paid.
Steers from 1 to 2 years old and from 2 to 3 years old reached values well above those of May 2021: 38% and 48% increase, respectively.
While calves are also hitting all-time highs, comfortably above $3, the calf / steer ratio remains below historical averages, and still favors the winterer.
john samuel
Everything remains firm: the price of cattle, slaughter, external demand and the export price.
Fluency in the sheep market
In sheep farms for slaughter there is little supply and it is placed fluently. Lamb is priced at US$4.55 per kilo, sheep at US$4.53 and sheep at US$4.10 per kilo.
In sales abroad of sheep meat, firmness is sustained in values, even with volumes lower than those of 2021. It has been seven consecutive weeks with the price per ton exported above US$ 5,000. Last week the average was US$5,400, with no major ups and downs. In the last four mobile weeks, it averaged US$ 5,592 and in the annual accumulated US$ 5,175, 9.5% more than in the same period of 2021.
