The fat cattle market reacted with rising prices

After four weeks in which the industry held firm at a purchase price of US$ 3.50 per kilo for standard steers — a level at which very few deals were closed due to producers' reluctance to accept that value — a significant upward correction has taken place in recent days. Official price lists have generally moved up to US$ 3.70 per kilo, but many deals are closed at US$ 3.80 or even a few cents more, according to a market operator consulted by WBR. For finished cows, trading is taking place at US$ 3.40–3.50. Price references in Paraguay are always quoted on a carcass weight basis, plant-delivered.

The source noted that the industry — especially the larger groups — made substantial high-priced purchases in May, around US$ 4.15 per kilo, and that shipments at those prices continued through early July. The industry had expected that the cold weather which arrived in recent weeks would boost supply, but that ultimately did not happen. At the moment, processors are operating with very short booking windows — in some cases just one day — and rising prices.

Expectations are that the upward trend will continue in the coming days. Next week, the traditional livestock fair in Mariano Roque Alonso, on the outskirts of Asunción, will take place, where producers and packers will come face to face.