With a more conservative positioning of the industry, the cattle market seems to have found its price ceiling. Usually refrigerators offer values below the prices at which they had been doing business in the last week.
They spent 17 consecutive weeks of rise for the fat haciendawhich from the beginning of the year until now accumulates a rise of US $ 1.3 per kilo for meat, an increase of almost 30%.
For the special tip steer, between US$ 5.45 and US$ 5.55 per kilo are proposed, below the US$ 5.60 that could be achieved in previous days. The good heavy cow is trading between US$5.30 US$5.35 per kilo, “with an industry trying to pass values below previous weeks,” said Christopher Brown, director of Agro Oriental. For special heifers, some value is raised somewhat below US$ 5.40 per kilo. This category is a little more difficult to place.
The inputs are different between plants, from seven to 15 daysa little longer than they came, which gives a guideline that the industry is better supplied, in the period of slaughter of free range cattle destined for Quota 481.
Although the incidence of slaughter for quota has been lower on prices and demand for grazing cattle, this quota window appears as a factor that could calm a heated market.
The work, despite the fact that it has been at record levels for several weeks, is still intense.
Slaughter: 14% higher than in 2021
There is a little more supply of cattle and that, added to the pens, drives the slaughter. Last week was the highest of the year: 58,968 cattle, 27% more than in the first week of May 2021.
Until May 7, 945,404 heads were industrialized, 14% more than last year and 49% more than in 2020.
In the first four months, cattle slaughter in pens registered by the National Meat Institute (INAC) represented 13% of the total.
Despite a drop in prices, the general firmness of the market remains. A correction of values would take place gradually, said Gustavo Basso, director of Gustavo Basso Rural Business, in view of a period of lower supply.
“The annual average price of Uruguay will not be below US$ 5 per kilo” for the steer, estimated the operator.
“I am confident of a recovery in demand for the second half of the year and I think the demand for beef will be there,” he said.
EO
In the international market, there have been adjustments in the values for beef in China and Europe. However, due to the time lag between closing deals and shipping, these changes have not been reflected in the export price published weekly by INAC, which remains at historically high levels.
Six weeks in a row with an average above US$ 5,000 per ton. In the last week the Average Income of Exports for beef was US$5,243, in the last 30 days it averaged US$5,304 and the annual accumulated is based on that reference: US$5,025 per ton, 30% above a year ago , according to preliminary figures published by INAC.
A yellow light came on this week with the port conflict, which is added to other logistical issues that affect the replacement of containers. All eyes will continue to be on the development of this conflict.
Sheep farms with stable values
The demand for sheep is uneven, with business on the references of the Association of Livestock Agents (ACG) –US$ 4.54 lambs, US$ 4.62 lambs, US$ 4.18 capons and US$ 4.15 sheep –.
The slaughter of sheep was 19,599 heads last week, showing an improvement over the previous. They add up to 423,629 in the year, 8% less than in 2021, with more sheep than lambs.
Unlike beef the volume of exported sheep meat has fallen. Cumulative sales are 7,362 tons compared to 9,491 last year, a decrease of 22%.
The export price, however, remains firm. Averaged $5,240 per ton in the last week and $5,278 in the last four moving weeks. The annual accumulated figure is US$ 5,157 per ton, that is, 8.8% more than the US$ 4,738 per ton for the same period last year.
