Demand Increase Underpins Fed Cattle Prices10 June 2013
BRAZIL - The fed cattle market in Brazil continued to move at a slow pace in late May in almost all regions surveyed by Cepea.
The research centre attached to Sao Paulo University said demand seemed to be higher than supply and this kept fed cattle prices firm at the end of the month.
Currently, most the cattle from the pastures had already been traded but those from feedlots were not yet ready in a significant volume.
As for demand, some slaughterhouses showed an interest to purchase to accommodate beef sales on the domestic market and also to satisfy exports.
For this reason, different types of animals have been traded reflecting directly on values.
Despite a steady market, fed cattle prices fell on some days in certain regions.
In São Paulo State, the ESALQ/BM&FBovespa Index for fed cattle fell by one per cent, closing at 98.28 reais or $45.78 on 31 May.
In the pig market, the Ukrainian embargo on Brazilian pork was the main driving factor at the end of May.
However, shipments of the fresh product increased by 26.5 per cent from April to May, helping to explain the recovery in hog and pork prices on the domestic market during May.
Moreover, a fall in the numbers of slaughter-ready animals in several Brazilian regions has also affected the market.
As for the poultry sector, chicken quotes continued to move down in late May.
As input costs rose, the buying power of chicken producers in Campinas (São Paulo State) dropped sharply in response to the movement in the price of corn and soybean meal between April and May according to Cepea-Brazil.
TheMeatSite News Desk