Cepea, Nov. 3 – CATTLE – Fed cattle prices closed October at stable levels, confirming the scenario observed during almost all the year. The ESALQ/BM&FBovespa fed cattle Index (Sao Paulo State) decreased a slight 0.52% in October, closing at 150.61 BRL (47.29 USD) on October 31.
Although the supply of animals to be slaughtered was reduced in that period, slaughterhouses did not show great interest in purchases, limiting arroba price rises. Besides the previously purchased batches and the purchases in other states, the weak performance of the beef market confirmed the retracted behavior of processors in the market of São Paulo State.
Despite the price stability, beef carcass prices traded in the wholesale market of the Greater São Paulo were higher than arroba prices (São Paulo State) in October, a scenario that could be observed since September 8 this year, when beef started to be traded above 10.00 BRL per kilo.
In the average of October, while beef carcass arroba averaged 153.51 BRL, fed cattle arroba (ESALQ/BM&FBovespa fed cattle Index, SP State) averaged 151.25 BRL (47.52 USD), a 2.26 BRL price gap per arroba.
This is attributed to the beef price increase in the wholesale market. From early September to October 31, beef carcass increased 4.5% and fed cattle arroba, only 1%. Beef price increases, in turn, were linked to the low supply of fed cattle for slaughter, which reduced slaughterhouses inventories. Besides, exports had been recovering in the last months, which may have decreased beef availability in the domestic market.
SWINE – Live swine and pork prices were stable in most regions surveyed by Cepea in October. Despite the low supply of animals to be slaughtered, weakened domestic demand did not allow price rises, especially late in the month.
Differently from expected, in natura pork exports decreased 15.5% in October, totaling 53.3 thousand tons, according to data from Secex (Foreign Trade Secretariat). This result frustrates agents’ expectations, who had the international market as an alternative to flow the Brazilian production. Despite the drops observed from September to October, the volume exported was still 21.1% higher than in Oct/15.
POULTRY – The poultry sector has been recovering from the negative scenario observed in the first semester, favored by the high prices of live animals and broiler in the Brazilian market. Prices of some chicken cuts were traded at record levels in October, in nominal terms, of all Cepea series, mainly full wing prices. Besides low supply in the domestic market, firm international demand pushes up the price of the product.
According to Cepea collaborators, slaughterhouses could be prioritizing boning to meet demands from different markets, mainly international markets.
Regarding full wings, the sharp price rises may be linked to the increase of broiler exports to Asia, mainly to China. From January to September this year, China imported 394 thousand tons of in natura chicken parts from Brazil, 69% more than in the same period 2015, according to data from Secex. The full wing has great importance for consumers in China.