Cepea, July 18 2019 – Brazilian shipments of in natura beef continue to move at a good pace. In the first semester of 2019, the volume exported was similar to the record verified in 2007. This scenario, along with the strong US dollar this year, resulted in a record revenue of nearly 10 billion BRL in the first half of the year.
From January to June, beef exports totaled 678.69 thousand tons, 27% more than the volume shipped in the first semester of 2018 and only 2.85% smaller than the record registered in the first semester of 2007 (of almost 700 thousand tons), according to data from Secex.
Revenue, in turn, totaled 2.57 billion USD in the first semester of 2019, 15% higher than that in the first half of 2018 and only lower than that in 2014, of 2.728 billion USD. In Real, the revenue received in the first semester of 2019 hit 9.89 billion, a record and 30% higher than that from the same period last year, according to Secex.
In June alone, not even the interruption of exports to China in the first 10 days of the month hampered the good sales performance, which totaled 111.1 thousand tons in the month (19 working days), the largest volume shipped in a month of June since 2007, when exports reached 115.1 thousand tons, a record (Secex).
The beef amount exported in June was 7.84% smaller than that from May/19, but two-fold the volume shipped in June/18 (54.4 thousand tons) – in that period, truckers’ strike in Brazil hampered shipments.
As for the revenue, it totaled 430.51 million USD, for a decrease of 8.41% in relation to that from May/19, but 55% up compared to that from June/18. In Real, the amount received in June/19 totaled 1.66 billion BRL, 11.4% down compared to that from May/19, but 58% up compared to that from June/18 and the highest for the period, according to Secex.
BRAZILIAN MARKET IN JULY – Between June 28 and July 15, the ESALQ/B3 Index for fed cattle dropped 1.5%, closing at 154.50 BRL (41.12 USD) on July 15. Quotes were pressed down by longer delivery windows at some slaughter facilities.
HOG – Brazilian exports of pork amounted 340.8 thousand tons in the first semester of 2019, 24% more than that from the same period of 2018, when shipments reached 274.4 thousand tons, according to Secex. Moreover, the pork volume sent to the international market in the first six months of 2019 was the largest since 2005 (343.6 thousand tons).
Revenue, in turn, rose 40% between the first semester of 2018 and that in 2019, from 1.91 billion BRL to 2.67 billion BRL. The larger amount sold to the international market, the prices paid for the Brazilian product and the strong US dollar favored the revenue obtained from shipments.
From January to June 2018, the price of the pork exported averaged 2.15 USD per kilo and, while in the same period of 2019, that value increased 74%, to 3.75 USD per kilo. The US dollar rose 12% in the same comparison, from 3.43 BRL in the first semester of 2018 to 3.84 BRL in the first half of 2019.
In the first semester of 2019, China bought 27% of the total pork volume Brazil exported, followed by Hong Kong (22%) and Russia (8%). In June alone, Brazil exported 62.6 thousand tons, 5.8% down compared to that in May, when 66.4 thousand tons were shipped.
In spite of this decrease, the pace of shipments was heated in June. The daily average of in natura pork exports was at 2.93 thousand tons, against 2.64 thousand tons in May (Secex). The decrease in the volume exported is linked to the lower number of working days in June (19) compared to May (22).
The revenue obtained from pork shipments in June totaled 136.7 million USD (527.6 million BRL). Compared to May, the amounts decreased 4% and 8%, respectively.
BRAZILIAN MARKET IN JULY – Live pig quotes increased in most of the regions surveyed by Cepea in the first fortnight of July. In the SP-5 region (Bragança Paulista, Campinas, Piracicaba, São Paulo e Sorocaba), prices averaged 5.44 BRL per kilo, 4.6% up compared to that in June.
Although the average price is higher in July than it was in June, the quotes received by pig farmers started to drop – on July 15, live pig was sold for 5.30 BRL per kilo in the SP-5 region. This scenario is mainly linked to the slower trading pace in the Brazilian market. Besides, Cepea collaborators reported that both live pig and pork meat from southern Brazil were being sold in the southeastern region, which helped to press down quotes in this area.
POULTRY – The Brazilian exports of broiler meat increased in June. However, shipments could have been slightly higher if China – the biggest importing country of the Brazilian broiler – had not lowered by 10% the amount purchased from Brazil in that period. According to Secex, the Brazilian exports of in natura broiler meat (salted and processed) increased by a slight 1.3% from May to June, totaling 386.2 thousand tons.
Thus, while in May broiler exports to the Chinese market hit a record (54.9 thousand tons), in June, that volume decreased to 49.6 thousand tons (Secex). Still, the volume shipped to China last month was the second largest of 2019.
Among the five biggest importing countries of the Brazilian broiler, only China reduced purchases in June. Compared to May, the volume sent to Saudi Arabia increased 1% last month; to Japan, 6%; to the United Arab Emirates, 11%; and to South Africa, 9%.
Revenue (considering all destinations), in turn, totaled 639.6 million USD (2.5 billion BRL). From May to June, the revenue in dollar dropped 3%, and in Real, 6%. Revenue in Real dropped more sharply because of the US dollar devaluation, which decreased from 4 BRL in May to 3.86 BRL in June.
In the first semester of 2019, broiler shipments totaled 2 million tons, 11% more than that between January and June 2018, according to Secex. Last year, the sector had some difficulties to sell the product to the international market. Although the volume shipped in the first half of 2019 was smaller than that in the same period of 2017 and 2016, the current performance already brings positive expectations for the Brazilian poultry sector.
Revenue in dollar totaled 3.41 billion USD in the first half of 2019, 18% up compared to that in the same period of 2018. In Real, revenue increased 33% in the same comparison, totaling 13.13 billion.
BRAZILIAN MARKET – Liquidity was higher in Paraná State than in São Paulo in the first fortnight of July. According to Cepea collaborators, in Paraná, exports performance was high, but lower than in previous months. In the Greater São Paulo, liquidity was lower in the broiler meat market, due to the school vacation period, since the product is largely consumed at school meals.
In Toledo (PR), frozen and chilled broiler quotes averaged 5.18 BRL per kilo and 5.13 BRL per kilo in the first fortnight of July, 1.3% and 2% higher than the averages in June. In the wholesale market of the Greater São Paulo, frozen chicken quotes averaged 4.68 BRL per kilo, a slight 0.6% up in the same comparison. Chilled chicken quotes, in turn, averaged 4.62 BRL per kilo, 1.5% lower in the same comparison.