During the last week, deals were made on the 3.90 dollars per kilo in fourth scale, and between 3.60 and 3.65 dollars for cow; likewise, the businesses in point reached 4 dollars for the steer and over 3.70 for the cow.
The virtuous circle of market developments and doubts about the drought
The improvement in values experienced during the last week in turn stimulated the output of cattle they were waiting for price. With rains that have been irregular and insufficient, doubts are placed on the cattle supply availability forward. In this sense, winter will be a great challenge since it is traditionally hard in terms of production.
On the industry side demand is active and entries are short. In China, the first reactions to the closure of exports from Brazil were prudent, waiting for how and how long the matter will be resolved, which, according to the confirmations of Canada, it was no more than an “atypical” case and not from consuming infected rations, so the expectation of a short period of suspension for Brazil they are more and more certainties.
In any case, the sanitary problem plummeted the price of the steer in the neighboring country, which was 15% below the local steer, with an average of 3.48 dollars per kilo.
Meanwhile in Europe he hilton remains firm and in Uruguay the $4,000 per ton seems to be the new export price floor for beef. Last week the value was $4,710, almost $500 above the previous week. The 30-day average rose for the third week in a row to $4,356, according to preliminary data from the National Meat Institute (INAC).
Also, the year seems to go from less to more. The latest report from the Dutch bank rabobank, published this week, projects that Chinese demand for beef will grow in the second half of the year —after a few months of decline in sales of Uruguayan beef in the Asian country— and with this, world prices for this product will increase.
Source: Ambito
