Calf prices have been moving up since January 2007 in the states of Sao Paulo and Mato Grosso do Sul. In nominal terms, the ESALQ/BM&F Index for calf (state of Mato Grosso do Sul) has been reaching successive records for one year. Since March 23rd 2007, there was an increase of 32.46 percent, from 397.17 reals or 192.80 dollars to 526.11 reals or 300.63 dollars this Tuesday. This firm market is justified by the low animal supply.
For growers that use the calf growing system, the purchase of animals represents around 14 percent of the effective costs of the beef cattle production, according to the Cepea/CNA. The calf increases plus the raise of other important items, such as fertilizers, concern growers that work with step ahead to the cow/calf production.
Steer prices kept firm in March, supported by the lower supply. The ESALQ/BM&F Index (Sao Paulo state) closed at 76.85 reals or 43.84 dollars per arroba (15 kilos) on Mar 31st. Different from what happened in previous years, when the Brazilian steer supply normally was higher in March, the scenario of this year is typical of an off-season period. In the wholesale market of Sao Paulo city, the steer carcass valuated 3.42 percent in the month, closing at 4.53 reals or 2.59 dollars per kilo this Monday.
For the living hog, prices received by farmers averaged 2.77 reals or 1.58 dollar per kilo on Mar 31st in Sao Paulo state, increasing 5.15 percent in Real over Feb 29th. In the wholesale market of Sao Paulo capital, the hog carcass valuated 6.2 percent in Real during the same period, at 3.99 reals or 2.28 dollars per kilo on Mar 31st.
On the other hand, in the poultry market, the frozen meat prices decreased 10.26 percent in Real in the accumulated of March, at 2.36 reals or 1.35 dollar per kilo on Mar 31st; for the chilled one, the decrease was of 3.57 percent in Real, at 2.16 reals or 1.23 dollar per kilo on Monday, both in the wholesale market of Sao Paulo capital - the most important Brazilian consumer reference. (Cepea - Brazil)