Brazilian Steer Price Average Record Level in 201320 January 2014
BRAZIL - Brazilian steer prices in 2013 averaged the highest on record (in nominal value), at R$ 3.41 kg/lwt - approximately US$1.58/kg lwt accordimng to figures from Cepea/Esalq.
Meat and Livestock Australia said that the high prices were driven by tight supplies, firm domestic consumption and strong international demand.
Beef shipments also rose in 2013, up 27% year-on-year, to 1.2 million tonnes swt, reaching the highest yearly volume since 2007.
The increase in cattle prices was also reported as a reflection of the lower number of cattle on feed in the second half of the year.
According to Assocon (Feedlots National Association) it is estimated the number of cattle on feed was 3.09 million head in 2013, down 9% year-on-year.
The cattle herd is also expected to have declined in 2013, which assisted cattle prices to rise last year according to Cepea/Esalq.
Despite the short supply of cattle, strong international demand boosted slaughter, and for the January to November period, cattle slaughter totalled 16.6 million head, up 2.6 per cent on the previous year (MAPA). Beef exports were also helped by the Real depreciation, which averaged 46US¢ for 2013, down 9.6 per cent year-on-year, (Brazilian Central Bank) and 15 per cent lower than the five-year average.
TheMeatSite News Desk