Uruguay: The maximum prices of the calves and change in trend

Published Jun 23, 2024

Tridge summary

Uruguayan breeders experienced a peak in calf prices at the height of sales harvest, but a correction followed, breaking the upward trend in the replacement ratio due to factors not related to the condition of the animals. In May, calves sold for an average of US$ 2.56 per kilo, down from April and the year's high. The reduction in sales volume and the impact of excess water also contributed to the price drop. The small generation size this year, due to drought, and reduced demand from wintering categories because of planting difficulties are influencing prices. The likelihood of the replacement ratio exceeding its historical peak of 1.47 from September 2022 seems uncertain, especially with the current international market conditions.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The maximum calf prices were very opportune for breeders, because they occurred at the peak of the sales harvest, but then there was a downward correction of relative importance that, since it did not occur in the references of the animals to work, had an impact on a break in the upward trend in the replacement ratio. Calves in the three main screens carried out in the country (Plaza Rural, Lote 21 and Screen Uruguay) averaged US$ 2.56 per kilo in May, 13 cents less (4.7%) than in April and 14 cents per below the monthly maximum so far this year (March), of US$2.70. In the first auctions of June, this correction was maintained. In April, 27,823 calves were sold on the aforementioned screens—the highest monthly quantity of the harvest—which was reduced to 15,603 in May. Therefore, it was not a growth in supply that motivated the drop in the average price, but rather the excess water that impacted the condition of the animals and the ability to use sown pastures. The peak so far ...
Source: Agromeat
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