Ramiro Maluff, president of the Paraguayan Association of Meat Producers and Exporters (Appec), warned that the current price relationship between replacement cattle and finished cattle is raising caution in the market.
Although fat cattle prices remain at historically high levels, the equation is showing imbalances that could threaten feedlot profitability. “Today the ratio is around 1.35 or higher, when historically it moves between 1.1 and 1.2. That’s a yellow light because backgrounders and feedlot operators are assuming costs that may become unviable depending on future fat cattle price movements,” Maluff told Valor Agro.
