The fat cattle continues in a gradual adjustment of prices and this week it broke the US$ 5 per kilo for the steer. The values are dissimilar between plants. And at the end of each week some adjustment is specified in the proposal of the industries.
The axis is located at US$ 4.90 per kilo in fourth scale for the fat steer. The special ones have 10 cents more or less depending on the plant. The fat cow is quoted between US$4.65 and US$4.75 per kilo.
With that as a frame, the entrances to the plants are around 10 to 12 days.
Demand remains cautious. There is no buying pressure, with a job that is still submerged. The 32,807 animals slaughtered last week – a holiday in between – were 17,000 less than in the same week of 2021, also with a holiday, with a 34% retraction.
Also, there is a little more supply of farms.
The market follows a different logic than what usually happens at this time, with increasing workloads and rising prices, said José Aicardi, director of MegaAgro.
john samuel
Finishing cattle in feedlot.
The weakening of the yuan
In the international market, the evolution of China is carefully observed. The demand for meat has not stopped, but there is an adjustment in prices. The weakening of the yuan puts buyers on the defensive and makes the market heavier. In some cuts there is a 20% drop compared to the April price peak, still very good values.
“Clearly there is a mismatch between the price of the farm and the current export price”broker Juan Lema, director of Agroreals, told Tiempo de Cambio radio Rural.
This time of year is the time when China typically has the highest demand for meat to arrive before the holidays. But this is not being reflected in the prices. The great offer from Brazil, which until July exported 22% more than in 2021, has had an impact.
In Europe in recent weeks there has been a rebound in prices. The Rump & Loin is around US$12,000 per ton and purchases will begin by the end of the year, with a more active demand. Volatility prevails in that market.
For now, the average export price published weekly by the National Meat Institute (INAC), with a lag with respect to the last deals made, is maintained at over US$ 5,000 per ton.
So far this year, the average reaches US$ 5,154 per ton, showing a year-on-year rise of 27%.
EO
Firmness predominates in the replacement market and the calf is still above US$ 3 per kilo on the eve of the entore.
This was reflected in the Uruguay Screen auction this week. The winter had sales of 100% and a lot of firmness. More selective was the market for breeding. The calf averaged US$3.06, which represents an increase of 4.8% compared to the values of the July auction.
While, there is a yellow light in the weather forecast for springwith the possibility of a third consecutive Niña.
For now, the regrowth of the fields is slow and the cattle have felt. In the south of the country, the verdeos have been pushing, but with some delay.
In lanares the market shows firmnesswith increases in practically all categories on the grid of the Association of Livestock Consignees (ACG).
The lamb up to 35 kilos had another week at US$ 4.54. The sucker reached US$4.85; heavy $4.88; lambs US$4.82; capons US$4.41; and sheep US$4.33 per kilo.
