Brazilian Cattle and Beef Prices Move Up16 October 2013
BRAZIL - Fed cattle and beef quotes maintained an upward trend in September.
On 30 September, the ESALQ/BM&FBovespa Index (São Paulo State) closed at 110.21 reais ($49.73), the highest nominal value since 22 November 2010.
Beef carcases traded in the wholesale market of the Greater São Paulo saw an average price, of 7.24 reais ($3.26) per kilo - the highest level in almost three years.
In September, the average of the ESALQ/BM&FBovespa Index was 106.94 reais, 5.5 per cent more than in August/13 (101.40 reais) and 11.3 per cent more than that in September/12 (96.11 reais), in nominal terms – in September, the increase is 6.5 per cent.
In the wholesale market of São Paulo State, the beef average price in September, 6.88 reais per kilo, surpassed in 9.7 per cent the value verified in August/13 (6.27 reais per kilo) and three per cent more than September/12 (6.68 reais per kilo.
This was the highest real average since September 2012, when the average was 6.89 reais per kilo. In September, beef carcase quotes rose by 11.5 per cent.
According to Cepea researchers, the decrease of the number of animals in feedlots this year, due to higher input costs is one of the major reasons for the smaller current supply.
The pig meat market saw the upward trend fall back in late September, because of the weakness of both domestic and international demands.
After moving up for two months in a row, Brazilian exports of fresh pork started to fall in September.
Slaughterhouses surveyed by Cepea say that they have not been able to transfer hog price rises to the wholesale market. The result is low liquidity, even in a period when trade tends to increase because of the stocks building for the end of the year.
In the hog market, the low supply of slaughter-ready animals continues to push up quotes in most regions surveyed by Cepea.
Expectations of higher exports in the second half of the year in the poultry sector have not been confirmed.
For the second month in a row, Brazilian shipments of fresh broiler meat fell.
In September, 277,500 tonnes were exported, 8.7 per cent below the August figure when 304,000 tonnes were exported and 1.4 per cent less than in September last year (281,400 tonnes according to Secex (Foreign Trade Secretariat) data.
Despite smaller exports, prices in Brazil continued to move up in September, underpinned mainly by the limited supply and by the firm domestic demand.
TheMeatSite News Desk