Beef continues more expensive than fed cattle in 2019

Cepea, February 5 2019 – Beef carcass prices were higher than fed cattle quotes in the wholesale market of the Greater São Paulo in January. Last month, beef carcass was traded at 157.20 BRL per arroba (@), on average, against 152.23 BRL/@ for fed cattle (ESALQ/BM&FBovespa Index – São Paulo State), a gap of 4.97 reais/@.


It is worth to mention that, in 2018, beef arroba was more expensive than fed cattle arroba most of the year, except for March, April and August, when the price gap between these products was narrow, at 1.64 real/@, 0.04 real/@ and 0.36 real/@, respectively. This scenario was largely linked to the lower animal supply in the field, the good performance of in natura beef exports (which were a record) and, in late 2018, higher demand in the domestic market, due to the holidays.


Last month, beef carcass quotes averaged 10.48 BRL per kilo, 0.76% less than in December. As for the fed cattle arroba, the ESALQ/BM&FBovespa Index averaged 152.23 BRL/@ in January, 1.34% higher in the same comparison.


JANUARY – Considering only the month of Jan/19, prices dropped for both beef and fed cattle. Beef carcass quotes decreased 4.08% between December 28 and January 31, closing at 10.33 BRL per kilo on Jan. 31. As for fed cattle, the Index remained stable (-0.07%) in the same period, at 153.30 BRL (41.99 USD) on Jan. 31.


HOG – Live pig and pork meat quotes dropped in the Brazilian market in January. The downward trend of prices worsened in the second fortnight of the month, largely influenced by both the retraction of slaughter facilities from purchases of live pig and the lower demand for pork meat in the domestic market.


According to Cepea collaborators, consumers’ extra expenses in January added to the school vacation period and the high temperatures reduced pork consumption and, consequently, increased pressure from slaughterhouses on live pig quotes, constraining acquisitions.


In the SP-5 region (Bragança Paulista, Campinas, Piracicaba, São Paulo and Sorocaba), live animals prices dropped 4.4% between December 28 and January 31, averaging 3.66 BRL per kilo on Jan. 31. As for pork, the average prices for the common and special carcasses decreased 7.5% and 9.5%, respectively, to 5.56 BRL and 5.86 BRL per kilo on Jan. 31.


Regarding the average price last month, live hog quotes dropped 2.28% in the SP-5 region, to 3.86 BRL per kilo in January. For the common and special carcasses, quotes decreased 2.3% and 4.4%, to 5.75 BRL and 6.06 BRL per kilo in the same comparison.


POULTRY – The trading pace was slow in the Brazilian poultry market in January. According to Cepea collaborators, this scenario reflects the low demand in the domestic market and a possible exports decrease. Thus, prices of both live chicken (paid to farmers) and broiler meat (traded in the wholesale market of the Greater São Paulo) dropped last month.


From December to January, frozen and chilled broiler prices decreased 2.5% and 2.7%, respectively, in the wholesale market of the Greater São Paulo, averaging 4.29 BRL and 4.32 BRL per kilo last month. As for live chicken, quotes averaged 2.80 BRL per kilo in the same region, 4.1% lower than in December.




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