Cattle Prices: Rainfall Determines Increase

Negocios Rurales Uruguay

 

Rainfall Finally Boosts Cattle Prices in Uruguay, Signaling a Market Shift

The rainfall from last week has ultimately set a floor and raised cattle prices in Uruguay. The livestock market is showing a change in trend, bringing relief to rural businesses in Uruguay, who eagerly awaited and needed this rainfall.

What factors are currently influencing the market?

In an interview with radio Carve for Valor Agregado, our director Diego Arrospide shared, “We continue to have a good level of slaughter, although there was one less day of activity due to the November 2nd holiday. We are in the midst of the slaughter process for feedlot cattle for quota 481.” The composition of the slaughter consists of 55% steers. Demand varies, with faster turnover. Several plants have kosher teams, which adds more pressure to demand, especially for heavy cattle.

When asked by Martín Olaverry about special heavy steers, which meet the criteria for export to Israel, Arrospide stated that as reflected in the ACG meeting on Monday, prices are at $3.32 with a peak of $3.42, offering a premium for this type of heavy and volume-based cattle that exceeds the average. Similarly, for cows, when heavy, special quality cattle are available, prices reach an average of $3.03, with a peak of $3.11.

Cattle prices in Uruguay have risen due to international influences and climate conditions.

These are very particular times when there is not a significant supply of high-quality cattle. There is a gap between steers and cows. The presence of Israel in some plants and the changing behavior of China in driving the market have an impact. There is weakness in demand, especially from China, particularly for cows. Heifers, on the other hand, are starting to flow more freely, with increased demand. Heavy, special quality heifers are currently priced at $3.21 and have a high demand at this time of the month.

We invite you to read the article published in the Rurales supplement of Diario El País at the following link:

https://rurales.elpais.com.uy/ganaderia/llovio-y-subio-el-ganado]

You can listen to the full interview here:

 

Thursday November 10th, 2022 | Por Arrospide