Farmland Uruguay Market Update October 2018

Monthly market update providing objective information about crops, cattle, forestry and other diverse farming business in Uruguay.

Climate

The weather has been relatively mild in early spring. In the south there were temperatures near 20 degrees Celsius during the day and near 5 degrees at night. More rainfall and cold nights occurred in the north of the country. At few places there was damage due to hail. Forecasts are positive with rainfall every now and then and mild temperatures during the day.Grasslands and crops are growing very well.

Cattle

Prices of cattle are up again with not much livestock being offered and high demand. Most cattle farmers prefer to wait as climate is good and allows fattening the animals more before sending them to slaughterhouses. The supply of sheep is also under pressure due to delays in sheep shearing.

In dairy farming international prices for milk and milk powder went down. Several smaller dairy farmers have closed their farming business due to the lengthy crisis in dairy sector. Also some dairy processors are in difficulties in Uruguay, especially Pili in Paysandú.

Crop

Cultivation of winter crops such as wheat, barley and canola continues looking very promising. Crops are developing very well. Only risk might be late frost damage in early October or abundance of rain during harvesting in December. It is not yet very clear what the consequences will be of trade war between China and USA. The record harvests of soy beans and corn in the US will lead to record stocks on global scale. These two developments lead to high uncertainty about price developments of grains. Expectations are that rice cultivation will decrease in 2018/2019 by 10%.

Price Livestock