Lower supply and better exports support prices

Brazilian cattle prices opened September at higher prices, supported by the lower supply. Buyers are more willing to trade, motivated by the shorter slaughter scales.

The ESALQ/BM&F Index for steer (São Paulo state) averaged 27.62 dollars per arroba (15 kilos) on Sep 18, up 4.2 percent in the month.

In Brazil, higher prices for cattle are common in the second semester, given the lack of pastures during the dry weather time.

The currently valuation, however, does not mean a real increase of cattle prices, but basically a recuperation of the values, which were at too low levels.

In the poultry market, prices have been moving up since August, due to the better exports since then.

The valuation of other meats has also contributed to increase sells in the domestic market, reducing the available supply.

Prices received by farmers of Campinas city (São Paulo state) for the poultry averaged 0.70 dollar per kilo on Sep 19, up 14.9 percent in the month.

In spite of the higher prices, the Brazilian poultry sector is very concerned about the possibility of Europe Union approves new taxes on the Brazilian exported product. That Block imported 21 percent of the total Brazilian poultry meat exports in the accumulated of Jan to Aug this year.

In the pork market, better exports in August made farmers more optimists.

Prices received by farmers of Campinas city (São Paulo state) for the living animal averaged 0.85 dollar per kilo on Sep 19, up 2.9 percent in the month.

From now on, expectations are focused on Russia's decision about reopening exports from Santa Catarina state, main pork producer in Brazil.



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