New Adjustment in Fat Cattle Values, with an Eye on Climate

It closes a fourth consecutive week of low prices for fat cattle. Although the adjustment has moderated, the values ​​continue under pressure in a scenario of increasing supply and with some nervousness due to the delay of the rains.

The industries propose lower values ​​and, even, some plant is without spending a price. The offer increases gradually, although the concretion of businesses has slowed down.

The special fat steer is priced between US $ 3.20 and US $ 3.25 per kilo on fourth scale, with some exceptional business above these references. At the end of the week it was difficult to exceed these values. The entries to the plant remain long, between 10 and 20 days.

For the good fat cow, business deals between US $ 3 and US $ 3.05 per kilo, achieving something more in specific batches. The cow is more in demand than the calf. The heifer is priced between US $ 3.15 and US $ 3.25.

Operators consulted agree that a slight additional price adjustment could be registered in the coming days. The volume of work and the weather conditions will be key.

Anxiety rises due to the delay of the rains, which would be arriving next week. The regrowth of pastures has been slowed down by the low rainfall and temperatures that are only now on the rise. There is a yellow light for the end of spring and the run of summer with forecasts that reaffirm a La Niña episode and a probability of below-average rainfall.

With this climatic panorama and the adjustment that the fat cattle has registered, movements in the replacement market have been reduced.

In the international market, uncertainty is increasing about how the European demand for meat will evolve in the face of the resurgence of covid-19. The bloc countries are tightening measures to prevent the spread of the disease; in some regions restricting activity in restaurants and announcing the closure of bars. In China, for its part, there is a sustained demand, but with moderate values.

The meat packing industry remains cautious. Last week the slaughter of cattle crossed 40,000 heads for the first time since the beginning of June. It registered a weekly rise of 12% and totaled 40,313 head. The most notable rise was in the slaughter of cows (19%) that added 16,798 heads. In the case of steers, the rise was 6% with 17,703 heads.

Agreements are being closed for the arrival of kosher crews at the end of the month in some plants. At the beginning of November, meanwhile, a new slaughter of corral cattle begins, destined for Quota 481, which may take away purchasing pressure on pasture cattle.

On the other hand, firmness predominates in the sheep. Business is taking place smoothly and prices continue to rise moderately. Light lamb is priced at around US $ 3.48, heavy lamb at US $ 3.54, lambs at US $ 3.51, capons at US $ 3.13 and sheep at US $ 3.07.

The weekly slaughter of sheep totaled 30,157 animals, a weekly jump of 19%.

Slight rise in exported value

The export price of beef averaged US $ 3,820 per ton last week, slightly above the previous week, according to preliminary data released by the National Meat Institute.

So far in 2020, the value per ton exported stands at US $ 3,823, a rise of 1.4% compared to the US $ 3,771 registered in the same period of 2019.

In sheep meat, the price remained stable with an average of US $ 4,404. So far this year it stands at US $ 4,291, a 3.9% drop compared to the US $ 4,465 registered a year ago.

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