Argentina: The cattle business needs new rains and more export demand to recover profitability

Published 2022년 11월 23일

Tridge summary

Recent rainfall may help prevent further drops in livestock prices, which have been decreasing since April and hit a 17-year low in November. The decline is due to decreased domestic and international demand, with prices for beef and other cuts falling significantly. China, a major importer, is currently digesting its meat stock purchases and easing Covid restrictions, but is also facing restrictions on beef imports from Argentina. The situation is worsened by forced sales due to the dry season and high corral operation rates, leading to record numbers in feedlots. The situation is further complicated by the possibility of insufficient early corn for fattening, which could drive prices up.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Luckily for the ranchers, last weekend it rained in several productive areas, which may cause a neutralization of the course of free fall in prices that has taken place since April. At the beginning of November, the kilo of steers had reached a dangerous situation, being below the average for 2005/2021, according to calculations by Ignacio Iriarte, director of Informe Ganadero. Likewise, the situation of livestock continues to be complicated. Iriarte says that "domestic demand cannot absorb a kilo more than it consumes and external demand has plummeted, especially in prices." Rump & Loin Hilton fell from $17,000 a ton in April to $9,000 today (-47%). The average number of cuts destined for China lost 35%: the shank and the shoulder fell 38%; the cuts of cows, from 33 to 35%, and the ball and the square, 31%. The Asian giant needs to digest the meat stocks purchased in recent months and must ease the restrictions imposed on the population in the fight against Covid, which ...

Source: Portaldelcampo