Low demand presses, but supply limits decreases

Besides the typical decrease in consumption during this period of the year (holidays, annual taxes, and others), the latest official report about the number of formal jobs in Brazil's economy brings more concern to the livestock sector. Data showed that in December/08, Brazil lost 655 thousand jobs, as a consequence of the international financial crisis, leading to the worst year for employment in a decade.

In this context, slaughterhouses keep retreated in Brazil, waiting for a better definition of the scenario. On the other hand, the animals supply remains low, limiting the decreases in prices. As a result, between December 30th and January 30th, the ESALQ/BM&FBovespa Index (Sao Paulo state) dropped 1.99 percent in Real, closing at 83.90 reals or 36.32 dollars per arroba (15 kilos) on Jan 30th. In the wholesale market of Sao Paulo city, the steer carcass devaluated 9.9 percent in Real, to 5.18 reals or 2.24 dollars on Jan 20th - considering the same period.

In the living hog market, the values received by farmers averaged 2.18 reals or 0.94 dollar per kilo on Jan 30th in Sao Paulo state, decreasing 8 percent in Real over Dec 30th. In the wholesale market of Sao Paulo capital, the hog carcass devaluated 14 percent in Real during the same period, to 3.38 reals or 1.46 dollar per kilo on Jan 30th.

Poultry prices also downed during the January. The frozen meat devaluated 3.7 percent in Real between Dec 30th and Jan 30th, at 2.58 reals or 1.11 dollar per kilo on Jan 30th; for the chilled one, on the other hand, there was an increase of 1.18 percent in Real, at 2.57 reals or 1.11 dollar per kilo, both in the wholesale market of Sao Paulo capital - the most important Brazilian consumer reference. (Cepea - Brazil)



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