Uruguay: feeder cattle prices under pressure
Feeder cattle prices have continued to slide in Uruguay, pressured by slow demand and increasing placements.
There is concern in the South American country about a lack of rainfall and deteriorating forage conditions, mainly in the centre and south, and about the absence of Chinese buyers in the market.
Steers are holding in a range of $3.60 - $3.70 per kilo, carcass weight, while cows are at $3.40 - $3.50.
How long these prices will hold is an open question as more animals are placed in the feedlots. Ranchers are fearful of losing animals owing to deteriorating forage, and so the only immediate solution is to send them to the feedlot.
Rainfall will slow the rate of placements giving ranchers more time and to look for signals from international buyers coming into the market, mainly from China.
