Increasing values surprise growers

Brazilian cattle prices accumulate an increase of 2.22 percent in January this year, according to the ESALQ/BM&F Index (Sao Paulo state), which closed at 25.27 dollars per arroba this Wednesday. The upward trend, even slightly, surprises agents, since values usually decrease during this period in previous years. The levels practiced this week are similar to those from the beginning of December.

Regarding the market pace, trades are moving slowly. Cattle supply keeps restrict and slaughterhouses are not willing to enlarge plant entries, due to the weak wholesale beef market. The steer carcass dropped 6.3 percent since the beginning of this month, closing at 1.49 dollar per kilo this Wednesday in the wholesale market of Sao Paulo city.

In the Brazilian pork market, after decreasing at the beginning of the year, the living animal prices upped in this second fortnight of January. This movement also surprised the market. Between January 15 and 24, prices received by farmers for the living animal increased 1.08 percent, averaging 0.93 dollar this Wednesday in Campinas region (Sao Paulo state). The support comes from the lower supply.

In the wholesale market, trades have been moving slowly, with decreasing prices. This scenario, however, should be reverted in the next weeks if the expectation of better exports confirmed. Traditionally, Russia reopened its purchases in February. If exports from Rio Grande do Sul and Mato Grosso states really intensify, animals and meat supply will reduce, supporting the domestic values.

For poultry, the living animal prices are increasing, confirming the expectation of a better scenario for this year. On the other hand, agents are concerned about soybean and corn valuations. In the wholesale market of Sao Paulo capital, chilled and frozen meats have been decreasing. The frozen poultry meat averaged 0.94 dollar per kilo last Wednesday, down 8.73 percent in the accumulated of the month. The chilled one averaged 0.95 dollar per kilo, dropping 7.76 percent in the same period.


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