Cepea, October 1 2019 – CATTLE – On September 30, the ESALQ/B3 Index for fed cattle (cash price, São Paulo State) closed at 162.62 BRL (39.07 USD), the highest nominal level in all Cepea series, which started in 1994. According to Cepea researchers, this scenario is linked to the fast exports pace, which is increasing the demand of slaughter facilities for new animal batches. Besides, the supply of fed cattle ready for slaughter is low, helping to push up arroba quotes in the Brazilian market.
Despite the nominal record reached on September 30, in real terms (considering the inflation), the current daily price is much lower than the monthly average from April 2015, at 189.89 BRL (values were deflated by the IGP-DI). Between August 30 and September 30, the Index increased 3.3%.
HOG – Higher animal purchases by large-sized integrated facilities, due to expectations for an increase in pork exports to China, pushed up live pig prices in the Brazilian independent market in September. Thus, animal quotes reached one of the highest levels in the year – only after that in June and in July, when the fast exports pace boosted prices for all swine products.
Between August 30 and September 30, live pig quotes increased in all the Brazilian regions surveyed by Cepea. The sharpest price rises, at 14.5%, were observed in São José do Rio Preto (SP) and in the region of Avaré/Fartura (SP), at 4.87 BRL per kilo and at 4.97 BRL per kilo, respectively, on September 30. In the SP-5 region (Bragança Paulista, Campinas, Piracicaba, São Paulo and Sorocaba), values rose 13.3%, to 4.93 BRL per kilo.
The price rises for live pig were passed on to pork meat. However, Cepea collaborators have reported that the high price levels lowered liquidity in the domestic market of pork meat in September.
POULTRY – With the low demand for broiler meat in the Brazilian market in September, prices dropped in almost all the regions surveyed by Cepea. On the other hand, the price in Real paid for the in natura product exported increased last month. This scenario, that reflects the US dollar appreciation against Real, has widened the gap between the price of the product exported and that in the Brazilian market – exports price has been higher.
In September, the gap between domestic and international prices was at 2.50 Reais per kilo, the widest in all Cepea series (which started in 2004) as well as in Secex series (1997). The gap observed in September was also 12.3% wider than that in August.
Between September 1 and 30, frozen chicken quotes averaged 4.29 BRL per kilo in the wholesale market of the Greater São Paulo, 2.7% down compared to that in August. As for the product exported, the average price in the first 15 working days of the month (until the third week) was at 6.88 BRL per kilo, 3.5% up compared to that in August.