Slaughter increase in Uruguay comes at a time when importers don't show greater interest because they have already
closed their purchases for the holidays. "Now we have to wait until week 50 to see where the market is positioned for the first
arrivals of 2019", a broker said.
With clear bearish pressure, "it is difficult to establish a reference" for the market. "It depends on the urgency to sell and the type
of customer", he said. In Uruguay, last week there were deals for Hilton rump & loin at US$/t 10,300 FOB, but this week there
were industries that were offering the merchandise below US$ 10,000 with no success, a trader assured.
The bearish current also reached Argentina, where deals were closed at US$ 10,800 FOB, and European importers passing bids
of up to US$ 10,500.
One option to release pressure on the chilled market would be to bet on frozen beef. However, in the opinion of two brokers,
today that business is "a risk" for Uruguay because Europe has an oversupply of Brazilian meat that has depressed values. "The
answer is that Brazil is US$ 3,000 cheaper than Uruguay every time we ask", said an operator.
To this we must add that in the first weeks of January importers will have to dispatch and place the quarterly load of the 481
quota of fed cattle beef. Precisely, about that deal, a Uruguayan trader said that negotiations for February loads are just
beginning. "The vast majority of customers are committed to maintaining the same values of the first quarter; there may be some
correction, but it won't be significant", said the source. Transactions for the 481 quota are usually more stable in sale values than