Lack of pastures and lower supply in Brazil

Domestic cattle prices kept moving up in September, supported by the lower supply. Normally, in the second semester it is noticed higher prices for cattle, due to the lack of pastures. In this period, most part of the fatten animals comes from feedlot.

The Esalq/BM&F Index increased 7.3 percent in relation to the end of August, closing the month at 28.37 dollars per arroba (15 kilos).

In the poultry market, prices keep moving up, as better exports (up 60.3 percent from July to August) resulted in lower domestic supply.

In São Paulo state, the frozen chicken (wholesale market of São Paulo state) averaged 1.00 dollar per kilo on Sep 29, up 17.6 percent in the month.

For the pork market, however, prices have been decreasing, pressured by the larger supply and the soft demand. The possibility of Russia reopen imports from Santa Catarina state, main pork producer in Brazil, was not confirmed.

Even so, prices received by farmers of São Paulo state for the living animal upped 3.6 percent in the month, to 0.85 dollar per kilo on Sep 29.

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