The livestock week ended without major changes compared to last week. The sharp drop in prices that had been recorded since the last days of June seems to be moderating. There was a slight rise in slaughter, although there is still no offer of cattle.
Although there are inquiries from the producers, few businesses are taking shape. Sales per fat steer are made in the axis of US$ 5 and US$ 5.10 per kilo in fourth scale, with agile entrances to the plant, around a week. For the cow, prices range between US$4.80 and US$4.85. There is disparity between plants.
Producers do not want to sell
“Producers do not want to sell and there is not much supply of cattle”, pointed out Alejandro Nicolich, director of Nicolich Rural Businesses. Pastures are behind. The rise in temperature and humidity come in handy to give a boost to the regrowth that has been slowed down.
There is expectation for how the market will evolve in the coming weeks, with an expected rebound in activity due to the return of some plants that will not be operating until August. And also with the entry of free-range livestock volume starting next month, when a new slaughter window begins for Quota 481.
“It is volatile, uncertain”, Nicolich considered, in a new price normality, which despite the strong adjustment of recent weeks, continue to be outstanding values. “We’re on a flat, and it’s helping that there’s no supply,” he said.
Steers that at the beginning of May reached –and in some cases exceeded– US$ 5.60 today find prices 10% lower, a reality of adjustment not only in Uruguay, but also in the region. In Argentina the steer lost 15% from mid-April to this part. And in São Paulo it fell 17% from the price peak reached at the end of March.
Price reference.
The low work scenario remains, although last week the activity showed an upturn compared to the previous one, with 36,062 cattle. External demand for beef is sustained, despite a moderation in the purchase values of the main markets.
The export price has registered a slight decrease, although it remains above US$5,000. They are 16 weeks above that reference. Last week it averaged US$5,343 per ton, according to preliminary data from the National Meat Institute (INAC).
Outstanding news arrives linked to markets, with a confirmed agreement between Mercosur and Singapore, announced this Wednesday at the Mercosur summit in Asunción.
Uruguay exported US$2 million of beef to Singapore in the first half of this year. It is a market of about US$ 300 million per year of imports of this product.
replacement market
In the replacement market, this week the demand in the Plaza Rural auction was surprising, with 100% placement on its first day of activity.
Calves averaged $2.99, three cents higher than the previous auction, and $550 a bundle.
In sheep, firmness predominates, with little supply and stable values while the first prepartum shearing advances. Lamb up to 35 kilos remains at US$4.54. The sheep rebounded and are located above US$ 4.63. And the sheep, also with an improvement in values, at US$ 4.13.
There is a marked drop in exports of sheep meat to China, with a drop of 54% so far this year.
The weekly export price fell below US$5,000 for the first time since early July. It stood at US$ 4,896 per ton.
Sheep slaughter plummeted in the last week to the lowest record since mid-2020: 6,645 heads.
