Cepea, July 2 2019 – CATTLE – Fed cattle prices oscillated sharply in the Brazilian market in June. Early in the month, the ESALQ/B3 Index for fed cattle dropped a steep 5.4% (until June 7), closing at 144.85 BRL (37.41 USD) on June 7, the lowest daily average since November/18. However, from mid-June, quotes resumed increasing, offsetting the losses from the beginning of the period. Thus, the Index rose 2.42% in the month, closing at 156.85 BRL (40.89 USD) on June 28. The average Index in June, at 149.95 BRL, decreased 1.83% compared to that in May.
In general, during almost all the first fortnight of June, the market was influenced by the temporary interruption of beef exports to China (due to the atypical case of mad cow spotted on an animal from Mato Grosso) – along with Hong Kong, China receives almost 40% of all the in natura beef Brazil exports. Besides, animal supply at the beginning of the offseason period helped to press down arroba quotes most part of the month.
In the second half of June, however, fed cattle quotes rose, mainly reflecting the resume of exports to China (announced on June 13) – which increases the demand for new animal batches.
HOG – The firm international demand for the Brazilian pork meat pushed up the prices of the product exported in June. According to data from Secex, in June, the domestic pork meat (in natura) was exported at the average price of 2,301.8 USD/ton, 1.83% up compared to May/19 and 18% higher than in June/18. Considering the average US dollar in June, at 3.86 BRL, the average price received in Real for the pork exported was 8,884.94 BRL/ton.
As for the volume, in June, exports totaled 55.7 thousand tons, 5.2% below compared to May, but 85% above than in June/18, according to Secex. In that period (June/18), the truckers’ strike in late May limited sales to the international market.
The appeal of sales to the international market increased slaughter at the slaughter facilities certified to export pork meat. According to data from IBGE released on June 13, the total carcass weight of the animals slaughtered in the first quarter of 2019 was 3.9% higher than that in the same period last year.
POULTRY – Prices for live chicken decreased in late June in Brazil. In the Greater São Paulo, quotes averaged 3.46 BRL per kilo in June, downing 2.54% compared to May. Players surveyed by Cepea say that the decrease is partly related to lower liquidity observed for broiler at the end of the month, which ended up reducing the demand for new animal batches.
Moreover, slaughterhouses that do not export and, consequently, meet only demands from the domestic market, have difficulties to trade the product at current price levels, limiting acquisitions of live animals. Still, the average price in SP was 16.9% higher than in June/18, in nominal terms.