The rancher continues to cadence the offers of animals for slaughter and the industries have less impetus in the purchases, with that, the prices rose R$ 5,00/@.
The physical market for live cattle recorded mixed prices – from stable to higher – this Tuesday, 25th, depending on the livestock market evaluated by the country. The slow flow of business is a reflection of the low supply of animals for slaughter in livestock markets and the attempt, even if not implemented, of offers below the reference. Therefore, some negotiations were carried out above the reference.
To further complicate the market situation, further downward movement in wholesale beef prices is a serious concern at the moment, considering the evident operational difficulties that meatpackers that operate only in the domestic market face. Cattle ranchers await the turn of the month, hoping for better prices to negotiate their animals.
The premium for cattle destined for export is between R$10.00/@ to R$15.00/@. Also according to the Agrobrazil app, negotiations in some markets reached a record this year. Ranchers in Varginha, in the state of Minas Gerais, reported negotiations of up to R$ 350.00/@ with payment within 30 days and slaughter scheduled for January 27th. See the image below for the trade details.
the price of Fat Boi Indicator/CEPEA, pointed to a great appreciation in prices, movement recovers the losses of the week. Thus, the prices of the arroba of the fat ox in the São Paulo average jumped from R$ 338,20/@ to the value of R$ 343,10/@, with this, the live cattle accumulates a positive increase this month of 1.96%, that is, an appreciation of R$ 5.00/@ in the daily comparison. Check out the graphic below!
Therefore, in São Paulo, the average value for the finished animal presented an overall average at R$ 336.79/@, on Tuesday (01/25), according to data reported in the Agrobrazil application. The Goiás square had an average of R$ 334.06/@, followed by Mato Grosso Sul with a value of R$ [email protected] And in Mato Grosso, the average closed at R$ 331.91/@.
The movement of few negotiations carried out, help to maintain the prices of the arroba at high levels. The prices of cattle destined for slaughter did not change when compared to the closing of the previous day (24/1). Therefore, beef, cow and heifer fat are priced at R$337.00/@, R$306.00/@ and R$325.00/@, gross and forward prices.
Another day of balance in the live cattle market, this is because while supply is short, demand shows no signs that its consumption pattern can increase significantly. On B3, the contract maturing in Feb/22 ended the day quoted at R$ 341.55/@, without major variations in the daily comparison.
In the North region, slaughterhouses are able to exert greater pressure on ranchers. Exports, on the other hand, remain at a good level, configuring an important support base for arroba prices.
In addition to the low availability of cattle ready to slaughter, The accelerated pace of Brazilian beef exports contributes to the stability of arroba prices in Brazilian livestock markets.
In the first 15 working days of January, Brazil exported 107,400 tons of beef in natura, according to data from the Foreign Trade Secretariat (Secex). The volume reached so far has already exceeded the amount shipped in the entire month of January last year, of 107.3 thousand tons.
When comparing the daily average of the current month, of 7.1 thousand tons, with the result observed in the same month of the previous year (5.3 thousand tons/day), the volume is 33.5% higher. According to calculations by Agrifato, only 10,000 more tonnes are needed to be exported to surpass the historic record set in January.
In terms of revenue, so far, foreign sales of beef protein in the current month have consolidated revenue of US$ 554.71 million, leaving just under US$ 8 million to also beat the historic level for a month of January.
With the dollar decreasing on a monthly basis, the rise in the average price of beef shipped from Brazil stopped and remained stable at US$ 5,160/t. However, the current price of Brazilian protein in natura is 14.4% higher than the amount paid in the same period in 2021, according to Secex data.
Giro do Boi Gordo through Brazil
- With that, in São Paulo, Capital, the reference for the arroba of the ox was R$ 340, compared to R$ 341 on Monday.
- In Dourados (MS), the arroba was indicated at R$ 319, stable.
- In Cuiabá, the value was R$ 316, stable.
- In Uberaba, Minas Gerais, prices are R$340 per arroba, against R$335.
- In Goiânia, Goiás, the indication was R$ 320 for the arroba of the fat ox, against R$ 322.
The wholesale market recorded lower prices for beef on Tuesday. According to Iglesias, the business environment still suggests the continuity of this movement in the short term. “The Brazilian consumer does not seem able to absorb new retail beef readjustments. The profile of consumption at the beginning of the year with the decapitalization of the consumer is an important factor. In this environment, migration to more accessible proteins happens on a recurring basis,” said Iglesias.
Thus, the rear quarter was priced at R$23.50 per kilo, down by R$0.80. The forequarter was quoted at R$ 15.80 per kilo, down R$ 0.10. The needle tip yielded around R$0.50, dropping to the level of R$14.50 per kilo.