With growing supply, beef market remains stable in Brazil

RIO DE JANEIRO, BRAZIL – The physical market for fat cattle registered stable prices on Tuesday. According to Safras & Mercado analyst Fernando Henrique Iglesias, the volume of supply remains positive, resulting in a comfortable placement of slaughter scales in much of producing regions.

“Rio Grande do Sul is still the exception, with a less significant volume of supply and with rising prices,” said Iglesias.

Overall, pastures are degraded and cattle ranchers are not finding favorable conditions to retain animals in the pasture, leading to the peak of the fat cattle season. “During the off-season, the dynamics will be different, with the potential reduction of the first-cycle feedlot due to the increase in cattle costs. In other words, the market will once again face a scenario based on restricted supply,” he added.

In São Paulo, the reference price for an arroba of live cattle (15kg) stood at R$304 (US$58)- R$305. In Goiânia (GO), the arroba was priced at R$290. In Dourados (MS), the arroba was listed at R$290. In Cuiabá, the arroba was indicated at R$302. In Uberaba, Minas Gerais, prices reached R$297 per arroba.

Wholesale

In the wholesale market, beef prices remain stable. According to Iglesias, the business environment suggests less room for readjustments during the second half of the month, a period with less appeal to consumption. “Moreover, chicken meat is still preferred by the average consumer, who still chooses proteins that cause a lower impact on their average income, a consequence of the slow process of economic recovery during 2021,” said the analyst.

As a result, the beef hindquarter had a price of R$20.45 per kilo. The forequarter was priced at R$ 18 a kilo, and short ribs remained at R$17.95 a kilo.

Source: Canal Rural

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