Fat cattle market at a standstill

“The market is paralyzed. There are no deals from either side — packers or producers,” a market agent told World Beef Report (WBR). Several plants have already filled their slaughter schedule for June and are even postponing some deliveries. “That may signal a contraction in slaughter activity,” the source speculated.

The latest price indications were around US$/kg 3.80 for regular steers and US$ 3.40 for fat cows. “At the beginning of this week the market is purely nominal. We don’t even have prices to close a load,” said the operator.

The reopening of roads in the Chaco region — some of which had been flooded for up to two months — caused a “bottleneck” in supply, with a sharp increase in cattle availability toward the end of May. This allowed the industry to secure raw material and extend delivery times. “Right now, the outlook is quite uncertain. It’s unclear where the new market balance will settle,” the source warned.