There is a depressed livestock market in valueswith business closing between US$ 3.20 and US$ 3.30 per kilo in fourth scale for the steer and in the axis of US$3 up to US$3.10 for the cow, but there are industries proposing below these references and others without paying a price.
The industry maintains a conservative positionwith a level of activity that picked up last week, but remains below levels registered a year ago.
The standing steer touched a minimum since May 2019. With the dollar at $38.35 –the lowest since February 2020– and steers standing at US$1.79 per kilo according to the chart of the Consignee Association (ACG) this week, the price of the cattle was located at a floor of $ 68.64 per kilo.
Although the offer is not important, there is a better positioning of the refrigerators. Charges are already being set for late January.
Jump in the cattle slaughter
The market is still closely associated with the weather. Whoever has a win soon, generally seeks to relieve the field, and it is what is sustaining the offer. Last week the slaughter had a weekly jump of 17% and with 53,300 cattle it reached its highest volume since the beginning of June. Likewise, it was below the record reached in the same week of 2021.
“The level of activity in the last week of the year and throughout January will be very low, well below what is expected,” estimated Gustavo Basso, director of Gustavo Basso Negocios Rurales. The supply –internal marketing– could give some impetus in January.
From the outside, China is stable in demand and price at the end of the year. With concern and uncertainty about the progress of covid cases. Market operators expect a recovery in demand from the United States in 2023 and that commercial alternatives can be explored to cushion the large fluctuations generated by Chinese dependence.
New normal in values
The export price of beef rebounded last week to US$ 4,191 per tonbut in 30 moving days the average was US$ 4,181, the lowest registered since the week of July 24, 2021. A new normality of values is ratified.
The replacement market is the most pressured by the weather factor. Sellers show a greater willingness to sell, with the need to adjust the load in some cases, while the demand remains cautious due to the lack of water. With some exceptions, such as the 1 to 2-year-old steer, prices dropped one notch compared to November in the last auction of the year for Pantalla Uruguay. Calves averaged $2.10, 11% below November and a similar value to December 2021 of $2.12.
Leonardo Carreno
The price of live cattle also fell.
Securities floor in lanares
The lanares seem to have found their value floor. There is greater placement fluidity, which is not usually the case at this time of year, when the offer is usually already placed.
Producers have rationalized supply, Basso explained, “and it is likely that we will have a more stable supply in the remainder of the summer and fall,” the operator considered.
The entries to the plant are around 8 to 10 days. Heavy lamb trades at US$ 2.93 per kilosheep US$2.44 and capons US$2.47.
Sheep meat continues to decline, China remains contracted, and although Brazil has recovered, values fell to levels below last year.
The export price was US$ 4,451 per ton last week, but the adjustment continues in 30 moving days, with an average of US$ 4,097. This is the lowest value recorded since August 2020.
The annual accumulated also fell below US$5,000 per ton for sheep meat: it was US$4,954 until last week, 3.9% below US$5,153 a year ago.
The amount
4,982 dollars is the average value of the ton of beef exported so far this year, below US$ 5,000, but 16% above the record for the same period last year.
