Supply Lull Between Pasture, Feedlot Selling10 June 2013
BRAZIL – May showed firm cattle prices due to demand outstripping supply as a break in production was seen between most pasture fed cattle having been marketed and much of the feedlot sector not ready to slaughter.
This is according to the Centre for Advanced Studies on Applied Economics who noted active buying in slaughterhouses. Analysts have said this was due to beef traders striving to satisfy export markets.
In Sao Paulo, the fed cattle index closed down 1 per cent to 98.28 Brazilian reals or $45.78 on May 31.
Hog trade rose despite embargoes from the Ukraine coming into force in recent weeks.
Rising 26.5 per cent from April to May, pork exports drove up prices. This was also helped by the reduction of slaughter-ready animals in several of Brazil’s regions.
Much of the pasture fed beef has already been traded with the feedlot sector trading few cattle.
Poultry continued downward movement last month. This was particularly felt in the Campinas area where producer confidence was hit in terms of buying corn and soybean meal inputs.
TheCattleSite News Desk