Uncertain outlook for cattle

An uncertain setting has marked the Brazilian livestock sector since the end of April. Slaughterhouses keep the pressure, justifying the slow wholesale market of Sao Paulo city. Growers, in turn, are still retreated, concerned about the higher calf prices. It is important to consider that the lower temperatures and the lack of rain turn the situation even worst to farmers, who are forced to trade the animals before the winter - starts in June.

In the wholesale market of Sao Paulo city, the steer carcass dropped 5 percent during April. For cattle, the ESALQ/BM&F Index (Sao Paulo state) moved down 1.34 percent from the beginning of the month to Apr 30th, closing at 55.21 reals or 27.12 dollars per arroba this Monday, Apr 30th.

For calf, prices are still moving up, supported by the lower supply. The Index (Mato Grosso do Sul state) increased 3.21 percent in April, averaging 414.70 reals or 203.69 dollars this Monday.

In the poultry market, living animal prices averaged 1.18 real or 0.58 dollar per kilo in Sao Paulo state on April 30th, decreased 7 percent in Real from the beginning of the month to Apr 30th. In the wholesale market of Sao Paulo capital, chilled meat upped 1.4 percent in Real during April, averaging 2.11 reals or 1.04 dollar per kilo on Monday, Apr 30th.

For pork, prices received by farmers, in Campinas region (Sao Paulo state), averaged 1.69 real or 0.83 dollar this Monday, up 7 percent in Real from the beginning of April to Apr 30th.

Even with these valuations, at the end of the month, poultry and pork prices started to decrease.

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