BRAZIL - Brazilian exports of fresh (natura) beef fell by 20 per cent in November, but still saw an average price in real (BRL) about two per cent higher than in October.
According to the official Brazilian market organisation Cepea, the fall in sales is a result mainly of the reduction of exports to Russia.
In September, Russians bought 34,230 tonnes; in October, 35,100 and, in November, only 14,000 tonnes.
In November, 90.500 tonnes of in natura beef were shipped by Brazil, seeing the total for 2014 reach 1.119 million tonnes, 4.3 per cent higher than in the year before and only 7.48 per cent below the record in 2007.
The average price in dollar terms, in the year, is 4.35 per cent higher compared to the same period in 2013, at 4,711.23 dollars per tonne.
Cepea said that because there are not indicators of the volume traded on the domestic beef market in Brazil, the analysis of prices in the wholesale market in the Greater São Paulo shows that the volume offered continues to be absorbed, despite high price levels.
The average price of carcase beef was 9.02 BRL per kilo in November, nine per cent higher than in October. Fed cattle quotes, on the ESALQ/BM&FBovespa Index, rose by 6.8 per cent.
Cepea said that this indicates that, in general, slaughterhouses have been able to transfer price rises of fed cattle for both domestic and international markets.
The cattle price increases because of a reduced supply, causd mainly by the dry weather.
In the Brazilian swine sector, November started very well, but price falls in the second fortnight led to a negative return this month.
In regions such as Arapoti (Paraná) and the west of Santa Catarina State, pig prices went down by 24per cent and 23 per cent, respectively. Regular and special carcase values, after hitting records on 6 November, dropped to 6.71 and 7.04 BRL per kilo in the wholesale market of the Greater São Paulo, bringing 10 per cent losses for the month.
The main reason for the change is the exporting activity.
Up to mid-November, Russia was taking in exports, pushing up international quotes.
Then, Brazilian slaughterhouses were accepting that they would have to pay higher prices for the animals.
However, as the Russian buyers backed off, the meat plants had no reason to keep the same purchase pace.
Meanwhile, beef quotes decreased, attracting some consumers, and, as a result, diminishing the demand for competing meats. This was mainly in the last week of the month. As with pork, beef quotes also hit records in mid-November.
As for the poultry market, natura broiler shipments dropped by 9.7 per cent in November compared to the month before, reaching 297,570 tonnes.
The volume allocated to the domestic market, mainly Greater São Paulo, has increased.
Because of this, demand for chicken has fallen, especially in São Paulo State, where there are many independent producers.
Between 26 November and 3 December, chicken value fell by 7.4 per cent on the SP average, at 2.45 BRL (0.95 dollar) per kilo on 3 December.
TheMeatSite News Desk