BRAZIL - Brazilian steer prices from Sao Paulo state eased in July, down 2.2 per cent on the previous month, averaging R3.97 kg/lwt – approximately US$1.78 kg/lwt according to Cepea/Esalq.
However, prices in Real term remained 16 per cent above the corresponding period in 2013.
Analysts at Meat and Livestock Australia said that beef exports for the same period rose 12 per cent, to 117,607 tonnes, driven by higher volumes shipped to Russia and Venezuela, with the average export price at $4.86/kg – the highest since April 2012.
Although domestic consumption increased during the World Cup period, more specifically from the second fortnight of June to the first fortnight of July, beef sales in the retail market have been reportedly below initial expectations.
In late July, sales in the wholesale market in Sao Paulo state were reported weak, returning to levels observed before the World Cup.
The strong international demand drove Brazilian beef exports to their highest monthly volume in 2014, at 117,706 tonnes.
A significant increase in shipments to Russia (up 78 per cent year-on-year, to 40,898 tonnes) and Venezuela (up 40 per cent, to 16,201 tonnes) were the catalyst for the rise.
In contrast, beef exports to Hong Kong declined 4 per cent, to 23,303 tonnes, while shipments to Egypt dropped 28 per cent, to 9,724 tonnes.
The decline on shipments to Egypt is mainly due to the ban temporarily placed on Mato Grosso state, result of a positive atypical BSE case earlier this year.
TheMeatSite News Desk