Prices at higher levels

Cattle, poultry and pork prices keep moving up in Brazil.

In the wholesale market of Sao Paulo state, beef prices reached the highest levels of the year. The hindquarter beef was traded around 2.32 dollars per kilo on Tuesday, October 17.

In the very last days, however, cattle prices decreased, pressured by the soft demand and the slightly larger slaughtering scales. Besides that, the decreasing cattle prices in Australia has been also devaluating the international values, reflecting in the domestic market.

However, it is important to remember that supply remains low in this off-season period in Brazil.

This Wednesday, Oct 18, the Esalq/BM&F Index averaged 29.09 dollars per arroba (15 kilos), down 1.66 percent in relation to the previous week. In the month, however, prices accumulated an increase of 2.54 percent.

According to Secex (Foreign Trade Secretariat), Brazilian beef exports totalized 106.1 thousand tons in September, around 17 percent above to the volume of August, but 13 percent superior to September of 2005.

The poultry market keeps the upward trend, due to the better exports and the higher demand in Brazil. In addition, at the moment, the poultry meat is cheaper compared to the others, contributing to an increase of the demand.

The frozen chicken (wholesale market of Sao Paulo state) averaged 1.15 dollar per kilo on Oct 18, up 10.6 percent in the month.

For the pork market, prices moved up last days, also supported by the better exports. Prices received by farmers of Sao Paulo state for the living animal upped 2.4 percent in the month, to 0.86 dollar per kilo on Oct 18.

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