Finished cattle market remains firm with steady prices

Even though part of the industry shows little interest in buying grassfed cattle, focusing instead on grainfed cattle from feedlots —either their own or pre-purchased— the slaughter cattle market is still firm, with prices holding at the levels of recent weeks.

Steers are mostly paid between US$ 4.50 and 4.60 per kilo carcass weight; as usual, isolated trades reach around US$ 4.65 for carcasses heavier than 280 kg that are located close to the purchasing plant. Because the plants willing to stretch to those top prices are in the south of the country, such highs are not attainable for cattle north of the Río Negro.

Cows largely trade at US$ 4.25-4.35 per kilo carcass weight, extending to US$ 4.40 for carcasses over 250 kg situated in the southern half of the country.

Demand for heifers from the domestic market is intense, further boosted by purchases for the 1 May Labor Day holiday, the day of the year when the most rib plate is consumed. Heifers quote at US$ 4.45-4.50 per kilo, with intense competition from feedlots that pay similar per-head prices and face lower tax costs because the sale is not final.

Bookings are uneven: some plants are covered for only 5-6 working days, others for about 10, while some do not offer a day for entering plants.

From next week the first kosher crews will arrive, adding demand for heavy cattle, mainly steers but also cows. Autumn weather remains almost ideal for pasture growth, so the expectation is for ongoing firmness, both from packers and from feedlots, as the industry clearly wants to give feedlots the incentives needed to secure cattle that will likely be scarce on pasture in July–August. Feedlot operators report deals at US$ 5.00-5.20 per kilo carcass weight for deliveries in those months.