Firm steer prices even with beef drops

Even with the lower supply, beef prices have been decreasing since last Thursday, Aug 9, in the wholesale market of Sao Paulo city. According to players, consumers have preferred other meats, as poultry and hog ones, which are cheaper

Between August 9 and 15, the steer carcass devaluated 3.1 percent, averaging 3.75 reals or 1.85 dollar per kilo this Tuesday. In this context, slaughterhouses have been trying to trade the steer at lower values. However, the supply keeps restrict and plant entries remain short. The ESALQ/BM&F Index (Sao Paulo state) closed at 64.93 reals or 31.97 dollars per arroba (15 kilos) on Aug 15th, up 3.16 percent in Real over July 31st.

According to the Secex (Brazilian government), the volume of in natura meet exported in July this year was 7.5 percent lower than that of June. In relation to the same period 2006, the reduction is of 15.5 percent.

Regarding the living hog, prices received by farmers averaged 2.16 reals or 1.06 dollar per kilo on Aug 15th in Sao Paulo state, increase 15.5 percent in Real over June 29th. The consecutives raises boosted farmers' purchasing power. In the wholesale market of Sao Paulo capital, the hog carcass valuated 21.45 percent in Real during the first fortnight of August, at 3.34 reals or 1.65 dollar per kilo on Aug 15th.

In the poultry market, the frozen meat prices upped 10.6 percent in Real in the first fortnight of August, at 2.61 reals or 1.29 dollar per kilo on Aug 15th; the chilled one increased 9 percent in Real, at 2.53 reals or 1.25 dollar per kilo on Wednesday, Aug 15th, both in the wholesale market of Sao Paulo capital - the most important Brazilian retail reference. According to the Secex, the volume of poultry meat (in natura) exported in this year (from January to July) was 25.3 percent higher than the same period 2006 and 8.8 percent superior to 2005.

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