Slight increase in supply and weaker demand

The slaughter cattle market remains firm, but several operators consulted yesterday afternoon agreed that “some additional supply has emerged” since last week. At the same time, expectations are that starting next week, part of the demand will begin to focus on grainfed animals — either from the buyers' own feedlots or through prearranged agreements — which will moderate their interest in spot market animals.

In this context, prices remain within the same ranges as the previous week, except for heifers, which are experiencing strong domestic market demand at the beginning of the month. In addition, buyers of this category face tough competition from feedlots. Well-finished heifers from winter pastures are fetching around US$ 5.00 per kilo carcass weight.

For steers, prices remain between US$ 5.00 and US$ 5.10 per kilo, with some special lots reaching US$ 5.15 or a few cents more. Cows are trading between US$ 4.70 and US$ 4.90, depending on quality.

Bookings are somewhat more relaxed at some plants. While some are still buying at 5–7 days, others have extended to 10–12 days. These generally correspond to the plants that will soon focus on feedlot cattle, either their own or previously acquired, thus reducing their presence in the spot market.

Market sentiment suggests that the upward trend seen in recent weeks may be coming to an end. Some plants are currently idle (Tacuarembó, Carrasco), others have cut back slaughter days, and some will focus on grainfed cattle — either owned or pre-purchased — and will therefore reduce their demand in the open market.

Winter pastures were hit hard by the severe cold of the past two weeks. These pastures had produced well-finished animals that increased supply in recent days but now need time to recover and will delay the delivery of new batches to the market.

The outlook is for prices to hold steady at current levels, with a greater share of grainfed animals and weak demand for grassfed cattle — a situation that will coincide with scarce supply.