The feedlots are emptying in Argentina, but the offer does not loosen

Published 2023년 1월 5일

Tridge summary

The article provides an overview of the Brazilian cattle market, highlighting a decrease in equilibrium prices by 35% in the last six months due to an increase in supply and a stagnant demand. Despite potential reductions in cattle offers, a struggling feedlot may lead to a decline in exports, which have plateaued despite high volumes. The industry believes that supply restrictions, not consumer demand, are the key to price improvement. The article also discusses the importance of cattle in food production, emphasizing their role in converting non-edible biomass into meat and milk, which enhances overall food production. It underscores the significance of ruminants like cattle in optimizing the use of the world's limited arable land for food production.

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

Original content

A greater supply and a lower demand by consumption and exports are reflected in an equilibrium price for the farm that is 35% lower in real terms than six months ago. The cattle offer will not be reduced in the short term, at least while the dry season lasts; There may be a moderation in shipments in the next two months, because the feedlot, with record levels of losses per animal, now seems to have begun to empty. Little can be expected from consumption: “Light cattle prices will only improve, and partially, if the supply is restricted. The consumer is cornered ”, they assure in the sector. Exports, which seem to have stabilized at relatively high volumes (76,000 tons in November), have lost all the improvement in FOB prices that they had until a few months ago and that allowed them to compensate for the brutal (deliberate) delay in the real exchange rate. China, when announcing 10 days ago the easing of the strict Covid-19 "0" policy, showed signs of improving its demand for ...

Source: Campototalweb