Cepea, September 3 2019 – CATTLE – Fed cattle arroba quotes oscillated most part of August, reflecting agents’ behavior in that period, who either left or returned to the market. The gap between bidding prices was wide, due to the different features of the batches available.
The gap between the minimum and the maximum prices was also influenced by the number of animals traded in August, which oscillated too. Late in the month, however, prices started to rise, boosted by the low supply of fed cattle for slaughter. Thus, between July 31 and August 30, the ESALQ/B3 Index for fed cattle increased 2.8%, closing at 157.05 BRL (38.02 USD) on August 30.
EXPORTS – Brazilian beef exports have been at a fast pace this year – the amount shipped between January and July was a record for the period. The good performance, in turn, is linked to the firm demand from China, although Brazil has increased the number of destinations in 2019.
From January to July, Brazil shipped 977.28 thousand tons of cattle products, 19.65% more than it did in 2018. In that period, China and Hong Kong received, altogether, 375.85 thousand tons, which accounts for 38.46% of the total. In the same period of 2018, China and Hong Kong imported 45.3% of all the volume shipped by Brazil, totaling 370.06 thousand tons. It is worth to mention that, although the share (%) of these two destinations decreased from 2018 to 2019, the volume purchased by them increased 1.56%, highlighting the importance of this market to Brazil.
Concerning the remaining destinations, the United Arab Emirates currently account for 5.8% of Brazilian beef exports, 350% more than it did in 2018, which makes the country the number five destination for the Brazilian product, receiving more than 56.695 thousand tons in 2019. Russia has also resumed purchasing more beef from Brazil, ranking as the number seven destination for the national product, purchasing 36.665 thousand tons, more than 1,000% up compared to that in the same period last year.
EXPORTS IN AUGUST/19 – Until the fourth week of August, Brazilian beef shipments (in natura) had totaled 97.68 thousand tons, according to data from Secex. The daily average was at 5.74 thousand tons, against 5.61 thousand tons in July/19 and 6.28 thousand tons in August/18. The average price paid for the beef exported was higher than 4,000 USD per ton, which had not been observed since February last year (Secex).
HOG – The slow trading pace for pork meat in the Brazilian market and the consequent difficulty to lower inventories pressed down pork quotes in August. However, despite the steep decreases compared to July, the prices paid for the protein last month were still higher than those from the same period of 2018.
Prices for the common and the special pork carcasses averaged 6.46 BRL per kilo and 6.59 BRL per kilo in the Greater São Paulo in August, 15.1% and 16.9% lower than in July. According to Cepea collaborators, besides the lower demand for pork meat in August, the competition with the product produced in southern Brazil also helped to press down quotes in São Paulo.
As for pork cuts and live pig, prices dropped too. Live animal quotes had the steepest decreases in Patos de Minas (MG) and southern MG, by 16.2% and by 16.1%, respectively, to 4.53 BRL and to 4.52 BRL per kilo on the average of the month.
POULTRY – The average monthly prices for broiler meat dropped in August in all the Brazilian regions surveyed by Cepea, reflecting the low liquidity in the domestic market, which is leading inventories to grow at slaughter facilities.
Even in the typical exporting regions, which are concentrated in southern Brazil, prices decreased, since the shipments pace for broiler was low last month – according to data from Secex, the daily average of shipments in the first 17 working days of August was the second lowest in the year.
In August, frozen and chilled chicken quotes averaged 4.41 BRL per kilo in the wholesale market of the Greater São Paulo, 4.5% and 4.3% down, respectively, compared to that in July. In Toledo (PR), in turn, prices dropped 1.3% and 1.7%, in the same comparison, averaging 5.11 BRL per kilo (frozen chicken) and 5.00 BRL per kilo (chilled chicken).