Calf Index reaches record levels

Brazilian calf prices have been reaching record levels in Mato Grosso do Sul and Sao Paulo states. The ESALQ/BM&F Index (Mato Grosso do Sul state - reference for the calf market) closed at 401.80 reals or 194.96 dollars per animal this Friday, Mar 30th, and the average in Sao Paulo was of 401.66 reals or 194.88 dollars per animal - from 8 to 12 months, nelore.

In the accumulated of March, the Index in Mato Grosso do Sul state increased 4.4 percent in Real and 7.4 percent in dollar. In Sao Paulo, prices upped 4.53 percent in Real and 7.6 percent in dollar. The upward trend has been surprising market agents, since, during the last four years, animal prices were stable or decreasing in some regions.

For cattle, the values have been increasing again, supported by the lower supply. The ESALQ/BM&F Index closed at 55.96 reals this Friday, almost unchanged in the month. In dollar, the Index increased 2.8 percent in the same period, at 27.15 dollars per arroba.

In the pork market, the growers' purchasing power reduced in March. That is because the living hog prices decreased more than the corn ones. The living hog devaluated more than 12 percent in Real in Campinas region, averaging 1.59 real or 0.78 dollar this Friday. The reason for the decreases was the lower demand.

For poultry, the market was also moved in a downward trend. The pressure also comes from the lower demand, due to the decreasing figures of other meat (beef and pork). In the wholesale market of Sao Paulo city, the chilled meat averaged 2.08 reals or 1.02 dollar per kilo this Friday, Mar 30th, decrease 15.8 percent in the month.

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