Argentina: Cow values recover after two months of decline

Published Nov 23, 2022

Tridge summary

The article provides an analysis of the recovery in the price of canned cow meat, which has seen a significant increase after hitting a low in October. This recovery is due to signs of relaxation in China's Covid controls, potentially leading to an increase in demand. Despite the high cow slaughter numbers this year, there is no evidence of a net liquidation of cows. However, the rate of cow shipments to slaughter has advanced in recent months, likely due to concerns about potential dry season refuges and a more expensive replacement cost. This advancement has allowed fields in better condition to replace older bellies with newer ones, as shown by a decrease in the number of heifers sent to slaughter this year.

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

Original content

Having touched a floor at the end of October in the Mercado Agroganadero (MAG), the canned cow manages to recover almost 30% of what has been lost since the beginning of September. At the close of last week, the floor for the category was firming around $170 per kilo, which reflects an improvement of about $20 or 13% compared to the lows recorded just three weeks ago. "With China showing signs of a gradual relaxation in the control measures of the Covid, the market is preparing for a potential reappearance of buyers, once the high volumes of meat that, it is estimated, still accumulate in local distribution channels have been digested", said the Rosgan specialist María Julia Aiassa. However, seasonally these are not times of abundant lean cow supply, beyond the prolonged outing generated by the dry season. In the first 10 months of the year, the slaughter of cows was almost 2.06 million head, a volume significantly higher than that registered in the same period last year, with 1.8 ...

Source: ARabc