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Exceptional steers reach US$ 5.60 per kilo on the fourth scale

Livestock farming is in a vastly different reality than it was a year ago. This week business of up to US$ 5.60 per kilo was achieved in the fourth balance for exceptional steers. The external market is still hot for beef, and paying unprecedented values ​​for the country.

Last year at this time the steer was sold at US$ 3.58 per kilo for meat. A year later, he exceeds that value by two dollars, a scenario that not even the most optimistic imagined.

Of course the business those US$ 5.60 are punctual: quality batches, in volume and proximity to the plant. More is paid for these cattle, which are practically non-existent. The average sales are made between US$5.40 and US$5.45. The loads to the plant are agile, around a week.

In this last year the psychological barrier of US$ 4 was crossed and then that of US$ 5. The big question is where the ceiling will be.

The well-finished heavy cow, above 230 kilos of carcass, achieves top prices of between US$5.25 and US$5.30 per kilo. The good fat cow, between US$5.15 and US$5.20. All values ​​well above the US$ 3.39 that this category averaged in mid-April last year.

The demand for fat property continues to be intense.

Strong industrial demand holds

The strong industrial demand is what explains this effervescence of the market. During Holy Week, 36,764 cattle were slaughtered, the lowest figure of the year, but 13% higher than that of the same week in 2021.

so far this year, Almost 100,000 more cattle have entered plants than a year agoaccording to data published by the National Meat Institute (INAC), an interannual rise of 14.6%.

In this context, the strong increase in the participation of steers with 2 to 4 teeth stands out. So far in April, cows and heifers are the ones that support the slaughter figures.

The amount

48% of the cattle slaughter accumulated in 2022 –777,553 heads– corresponds to the steers category (373,895), 37% to cows (284,582) and 13% to heifers (104,194). The rest are bulls and calves. The total slaughter is 14.6% higher than what had been given as of April 16, 2021.

Beef exports averaged US$ 5,464/ton

When export prices are observed, the cause of this strength is understood. The world is still hungry for beef and pays for it. The exported ton averaged $5,200 from the last 30 days. And in the last week, US$5,464, according to preliminary data from INAC.

The United States Department of Agriculture (USDA) adjusted its export projection for Uruguay for this year upwards to 530,000 tons, halfway between the previous projection of 480,000 tons and last year’s sales of 556,000 tons ( see more in the report on pages 6 and 7).

Nothing suggests that the market will lose firmness in the medium term, consignees consulted agree.

The replacement also advances, but at a slower pace than the fat one. The replacement relationship continues in favor of the winterizer. There is good demand and priority is given to short businesses. The corrals are also taking heavy steers and heifers to finish it off. For steers of 350 kilos or more, business has been done around US$ 2.50 per kilo standing per truck. And it can be more by volume.

Exceptional steers reach US$ 5.60 per kilo on the fourth scale

OE

Calm in the wool market

While, the sheep market is calmer, with priority for light carcasses, up to 24 kilos, in accordance with external demand. Values ​​are lower for heavier animals. Business is done for lamb at US$ 4.30 and for sheep US$4.08 per kilo.

Last week, 12,193 sheep were slaughtered and so far this year there are 377,230, that is, 6% less than in the same period in 2021.

The price per ton of exported sheep meat shows some stability, with an average of US$5,257 in the last week and US$5,479 in the last 30 days.

The annual average is US$5,161, 9% above last year’s value.

In sheep, the great concern is that the stock continues to fallwith a growing participation of sheep in the slaughter of the species.

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