Cattle market and investments: Interview Diego Arrospide

Precios mercado ganadero uruguayo

Uruguayan Livestock Market Prices: Current Situation

Diego Arrospide, managing partner of Escritorio Arrospide, was interviewed for the program Valor Agregado of Radio Carve,. He offers a vision of the current situation of the sector, highlighting the activity of the meatpacking industry, the prices of the Uruguayan livestock market and the perspectives for the future.

Good level of activity in the meatpacking industry

Asked by journalist Martín Olaverry about his perspectives on the level of activity in the industry in this last week- marked by the weather situation-, in which  FOICA  carried out a strike due to the storms red alert, Arrospide says that it is important to highlight the level of slaughtering, 45,000 head of cattle.

Considering the scenario, despite the fact that there are 2 important plants that are not slaughtering,  we are in a very good level of activity, very good level of prices -which are almost 6% above last year-. This clearly shows the dynamics of the market.

Livestock market prices

There is stability of values, but there is also a disparity among plants, especially in high-end cattle, for special categories. We note that there is stability in prices in closed deals. 3.61 dollars for steers and 3.67 for special export steers. The average cow is 3.26 and the top is 3.34.

Demand

The demand for special cattle and the disparity between plants should be highlighted. There is a strong demand for special cattle, which generates a price disparity between the different plants of up to 10 or 15 cents.

Factors affecting Uruguayan livestock market prices:

Asked by Olaverry if once the Marfrig and San Jacinto plants that are currently stopped resume activity, it is possible to recover the cents lost in the previous weeks, Arrospide says that he tends to think about stability. “The supply remains well positioned and pretentious. The market is built in that range of values. We are with a calm supply, without selling pressure, with exuberant forage as we have rarely had at this time of year and on the other hand the fundamental factor of the lean-to-fat ratio of 1 dollar. 36. That puts a lot of pressure on when it comes time to buy. The feedlotter who has to replenish tries to secure the replacement, There is not a large volume of supply of calves, although they are starting to appear. After the vaccination is finished, after this week they will start to appear more, that was a factor that also influenced. There will be a more important supply of calves. All the mentioned factors have influenced and we have a producer who is also expectant and calm.

The supply of cattle remains calm, without selling pressure, due to the good availability of forage, which is exuberant and atypical compared to previous years, and the favorable lean-to-fat ratio.

Live export:

Asked by Olaverry about the replacement on the live export, in the market there was an operation with that 400 kg steer. Asked by the journalist if that steer is still being bought even at more than 2 dollars, Arrospide says that it can be reported that there have been specific deals to complete a ship at 1.90.

The export of calves is active, with this scenario of internal market prices, it is difficult to get hold of the cattle even though the heavy calves are where they are more competitive and they are seen starting to have more participation in the market, but still very timidly. The calves are heavier, up to 180 kg compared to the average weight of 2023. They are heavier, up to 10 or 15% more than last year. All this closes a very good number for the breeder.

Specific deals have been closed for 400 kg steers at 1.90 dollars, but no operations have been registered above 2 dollars.

Calf exports:

Calf exports remain active, although exporters are finding it difficult to acquire them due to domestic market prices.

Calf herds:

Calf herds are heavier than last year, up to 10-15%, which benefits the breeder.

Listen to the full interview here:

https://twitter.com/VA_arg_ok

For inquiries about farms for sale in Uruguay and leases, visit our website Campos:

https://www.escritorioarrospide.com.uy/

Or contact us by whatsapp, email or social network

Thursday April 4th, 2024 | Por Arrospide