Prices decrease again

Brazilian cattle prices moved down faster, even without large supply. Slaughterhouses have been facing some difficulties in selling beef in the wholesale market. This way, they have been forced to trade at lower values day-by-day. In November, the ESALQ/BM&F Index decreased 10.7 percent, closing this Thursday at 24.30 dollars per arroba.

On the other hand, the possibility of better consumption in the domestic market during next days, the reduction of animals' supply and the shorter slaughter scales should contribute to lessen the downward trend. For a while, however, a great deal of market players is insecure about market definition in this end of year.

In the wholesale market of Sao Paulo state, the steer carcass devaluated 8.4 percent in comparison to October 31st, to 1.52 dollar per kilo on November 30th. The decreases have been lasting for one month and a half, eliminating all the increases from July.

For pork, the downward trend keeps related to higher supply. Prices received by farmers of Sao Paulo state for living animal downed 41 percent in relation to October 31st, closing at 0.52 dollar per kilo on Nov 30th.

As for poultry, prices decreased in November, pressured also by the larger supply. The sector enlarged its production in October, motivated by the better exports and the forecasts of increasing consumption with the end of the year. The frozen chicken downed 12 percent between October 31st and November 30th, averaging 1.04 dollar per kilo (Sao Paulo state).

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