Live cattle prices remain supported by firm demand | Livestock

The price of beef arroba is sustained in most producing regions, in a scenario of ample supply of cattle, but also of heated demand, which has contributed to the flow of meat. However, no big jumps in prices are seen.

The Datagro cattle indicator closed Wednesday (24/4) with an average of R$ 236.07, an increase of 0.93% compared to the previous business day, with reference in São Paulo. Last month, the increase was 1.4%.

“The supply remains very strong. On the other hand, demand is resilient in the domestic market, where beef is competitive, and we are also able to sell it in exports”, said João Otávio Figueiredo, head of Datagro Pecuária.

The exchange rate has favored foreign sales of Brazilian protein. According to the expert, China continues to stand out among buyers, although Brazil has been making efforts to diversify its export destinations, with shipments to Mexico, for example.

“Some operators comment that China buys for a few days and then leaves the market, presenting a ‘bite and blow’ movement”, commented consultancy Agrifatto in a note.

This movement, however, was still not enough to cause changes in the outlook for beef prices. China’s latest offers for the purchase of forequarters were US$4,200 per ton, and “this price is not considered satisfactory for exporters, meaning there are still impasses in negotiations”, he added.

Despite these values ​​per ton shipped, in volume, Brazilian exports of fresh beef were intense in April, signaling a monthly record.

The Center for Advanced Studies in Applied Economics (Cepea) stated, based on data from the federal government, that daily shipments exceeded 10 thousand tons until the 19th, totaling, in part, more than 155 thousand tons sent abroad, which which would already represent the second best April in history, even with seven days left until the total is counted. In April 2022, a historic record for the month, the daily average was 8.29 thousand tons.

According to Cepea researchers, the current volume, in fact, should help to achieve greater balance with domestic supply, giving signs of firmer prices in the physical market in the short term.