No signs (for now) of price easing in the finished cattle market

Cattle prices remain on an upward trend, with no drastic change in scenario expected in the short term. That’s the sentiment shared by several agents in the finished cattle market. Last week, strong and widespread demand from processors across categories persisted, further strengthening prices. One intermediary quoted special grassfed steers at US$ 4.80–4.85 per kg carcass.

“There are producers with scale and good feed availability who believe US$ 5 is possible in the coming weeks. That’s why supply of these animals is limited, and when they appear, there’s fierce bidding between plants,” one source told WBR.

Another operator said that a market shift would require a “drastic drop in slaughter pace,” something “we’re not seeing from the industry today.”

For heifers, business is mostly around US$ 4.60 per kg meat, with special lots reaching US$ 4.70, according to one operator. Cows are trading in the US$ 4.40–4.60 range, with most deals around US$ 4.50–4.55. Slaughter bookings remain tight—one week at most. On Tuesday, some plants were even looking to schedule loads for Thursday. Heavy rains in some regions that day were also affecting shipments from various parts of the country.

Another market effect from the firm prices is that feedlots are struggling to source steers for new placements. Since payment terms are usually 90 days, producers are now asking over US$ 2.60 per kg live weight to supply unfinished cattle to feedlot operators, according to WBR sources.