Distinct markets increase gap between minimum and maximum values

Cepea, February 5, 2024 –

CATTLE – The fed cattle market has been facing a scenario where differences between cattle farmers and slaughterhouses are more significant than the usual. Along with this “dispute”, trades have been relatively concentrated at a lower or higher level. The difference is mainly attributed to characteristics of the animals and the beef destination (domestic or international market).

The gap between minimum and maximum values has been observed in several regions. Considering the areas surveyed by Cepea, the price gap average for fed cattle was at 11.72 Reais per arroba on January 30. The biggest gap, of 26.71 Reais per arroba, was observed in São José do Rio Preto (SP), where the minimum value was BRL 233.28 and the maximum, BRL 260.

This scenario increases the challenge for the CEPEA/B3 Index, which represents the average price for fed cattle, 16 arrobas or more, up to 42 months-old in the cash market in São Paulo state.

The CEPEA/B3 Index for fed cattle (São Paulo State) moved down 2.89% in January, closing at BRL 245.00 on Jan. 31.

SWINE – Price averages for live pig and pork meat dropped in January against December/23 in Brazil. The decrease is attributed to the low pace of in natura pork exports and to the weak demand in the domestic market.

In the first 19 working days of January, the daily average of shipments was 3.7 thousand tons, 22.7% less than in December/23 – data from Secex. China, Brazil’s most important trade partner, usually boost purchases in the end of the year, to build stocks for the Chinese New Year. Therefore, acquisitions typically decrease in January.

Sales in the domestic market were moving at a slow pace in late January due to the low purchase power of consumers in this period of end of the month, to school vacation and to the high supply of live pig, scenario that pressed down quotations in the month.

POULTRY – Chicken meat prices decreased in January, due to the supply increase, since exports moved down, and to the low domestic demand (because of extra expenses of Brazilians in this period and school vacation).

The average price for whole chilled chicken dropped 2.6% from December/23 to January/24 in the wholesale market of the Greater São Paulo, to close at BRL 7.03/kg in the first month this year. For the frozen product, values decreased 2.5% in the same period, to BRL 7.04/kg.

As for cuts, mid-joint wing prices in the wholesale market of the Greater São Paulo downed 2% in January against December. Concerning live animals, the average price in São Paulo state remained firm in January (-0.2%), closing at BRL 5.11/kg.

Regarding exports of in natura chicken meat, in 19 working days of January, the daily volume shipped was 17.5 thousand tons, for a decrease of 19.6% compared to December/23.

(Cepea-Brazil)