BRAZIL - After five consecutive monthly increases, Brazilian steer prices during May fell by two per cent on the previous month, averaging R4.06 kg/lwt in Sao Paulo state (approximately A$1.95 kg/lwt) according to Meat and Livestock Australia.
While an increased supply of slaughter ready cattle contributed to the decline in May, prices for May still average 24 per cent above the corresponding period in 2013.
Beef exports for the same period totalled 102,800 tonnes, up 12 per cent year-on-year.
The weak Brazilian currency, which so far in 2014 has averaged 15 per cent lower year-on-year (at U$0.43), combined with strong international demand lifted exports for the period.
The strong May result also occurred despite the beef bans placed in early May as result of the atypical BSE case in Mato Grosso state in mid-April.
With the World Cup starting next week and presidential elections in October, domestic consumption is forecast to increase substantially, which is expected to help sustain both cattle and beef prices domestically.
TheMeatSite News Desk