Analysis of the Livestock Market and Projected Outlook for November-December

Interviewed by Martín Olaverry on Valor Agregado, Diego Arrospide examines the reality of rural businesses in Uruguay, focusing on the livestock market for the meat industry.

Over the past two months, the market has experienced an average adjustment of 4 to 5% per week. A slight increase in slaughter was seen as a positive sign in the last week. Demand continues to exert little pressure, with weather conditions playing a significant role. Cattle arrivals remain at approximately 15 days.

What factors contribute to this reality in agribusiness? What can be expected in November and December?

Widespread rainfall alleviates the situation, and slaughter will be the main driver for the industry. In November, the quota 481 window opens, with an expected increase in slaughter of around 50,000 heads. Could this lead to a potential floor in cattle prices? A significant level of traction is needed to ease the current scenario and reach a point of equilibrium.

What are the prevailing prices for steers and cows in the market?

The reference prices from the ACG pricing meeting align with market conditions. Fat steers are priced at $3.36, cows at $3.09, and heifers at $3.24. These figures reflect the average values of transactions in a market that has undergone further adjustment. Consignees do not anticipate major changes in the business dynamics.

How is the situation for the sheep sector?

The scenario is similar, with pronounced seasonality in production. Prices continue to decline, and there are long waiting periods for animal placements. It becomes challenging to sell animals weighing over 24 kilograms. The majority of slaughter volume comes from heavy lambs, priced at around $3.50, while wethers are priced at $3.10 and ewes at $2.98. We are entering a complex phase where feedlot animals take priority, which has repercussions on sheep arrivals.

We appreciate the coverage by Valor Agregado and provide the link to listen to the full interview here.

Every week, we publish the reference values for the livestock market on our website and social media platforms, based on the Monday meetings of the Association of Livestock Consignees.