Producer holds supply in April and cattle prices rise in much of the country

The physical market for live cattle recorded higher prices for the arroba of cattle in most of Brazil’s commercial markets throughout April.

According to the analyst Crops & MarketFernando Iglesias, the good volume of rain allowed the livestock farmers adopted the retention of cattle supply in the pasture as a recurring strategy, allowing negotiations to take place at slightly higher levels.

Thus, for May, the picture tends to change completely, with the weather still playing a decisive role in price formation.

For Iglesias, the lack of rain and high temperatures in the Center-North of Brazil should cause great wear and tear on pastures, causing livestock farmers to be forced to negotiate a greater number of animals from the second fortnight onwards, establishing a negative bias to prices.

Arroba prices

The prices for live cattle in installments in the main marketing areas in the country were as follows on April 30th:

• São Paulo (Capital): R$ 233 per arroba, an increase of 3.56% compared to the March closing price of R$ 225
• Goiás (Goiânia): R$ 215 per arroba, unchanged compared to the previous month.
• Minas Gerais (Uberaba): R$ 230 per arroba, an increase of 4.55% compared to the end of March, R$ 220
• Mato Grosso do Sul (Dourados): R$ 225 per arroba, an increase of 2.27% compared to the March closing price of R$ 220
• Mato Grosso (Cuiabá): R$ 220 per arroba, an increase of 4.76% compared to R$ 210 the previous week
• Rondônia (Vilhena): R$ 192 per arroba, a drop of 0.52% compared to the R$ 193 recorded at the end of March.

Bull in the wholesale market

The wholesale market presented firm prices throughout April. The hind quarter of the ox rose 1.17%, going from R$ 17.10 per kilo to R$ 17.30 per kilo. The front quarter rose 5.90%, from R$13.20 to R$13.90.

According to Iglesias, the business environment still suggests increases in the price of wholesale beef throughout the first half of May, due to the celebration of Mother’s Day.

However, from the second half of the month onwards, the outlook is for a calmer business rhythm, which could contribute to changes in the price scenario.

Meat exports

Exports of fresh, frozen or chilled beef from Brazil generated US$923.343 million in April (20 working days), with a daily average of US$46.167 million.

The total quantity exported by the country reached 203,839 thousand tons, with a daily average of 10,192 thousand tons. The average price per ton was US$4,529.80.

In relation to April 2023, there is a 58.1% increase in the average daily export value, a 56.6% gain in the average daily quantity exported and a 5.1% devaluation in the average price. The data was released by the Secretariat of Foreign Trade (Secex).