Short Supply of Cattle Puts Live and Deadweight Prices Up Through September23 September 2013
BRAZIL - Fed cattle and meat quotes have been registering significant increases in September, affected mainly by the limited supply compared to the demand.
The ESALQ/BM&FBovespa Index (São Paulo market) closed at 106.78 reais (46.89 dollars) on 16 September, the highest nominal level since 24 November, 2010, when the average was 107.92 reais.
In regard of the beef carcass, the average on 16 September in the wholesale market of the Greater São Paulo was 6.93 reais (3.04 dollars) per kilo, the highest price level since November/11 – on November 21, 2011, the average was 6.97 reais per kilo.
In general terms, the fed cattle supply was reduced in almost all regions surveyed by Cepea in early September, except in Rio Grande do Sul State, where producers were using pastures to plant other crops. In this period, the volume available in the Brazilian market refers mainly to feedlots.
In the partial of September (until Sept. 16), the São Paulo market averaged 105.48 reais, 4.3 per cent more than in the same period of August/13 (101.11 reais) and 9.7 per cent above that in the first fortnight of September/12 (96.16 reais).
In the wholesale market of the Greater São Paulo, the average price of the beef carcass, of 6.73 reais per kilo, is 8.2 per cent above that in the same period of August/12 (6.22 reais per kilo), but 1.3 per cent smaller compared to that registered in the first fortnight of September/12 (6.82 reais per kilo).
TheCattleSite News Desk