BSE Does Not Dampen Beef Exports Which Lowers Prices04 June 2014
BRAZIL – A rise in beef exports has stopped a trend for higher steer prices in Brazil, despite last month’s BSE scare.
Average steer prices declined two per cent in May on the previous month, averaging R4.06 kg/lwt in Sao Paulo, approximately A$1.95 kg/lwt.
This ends a five month period of price increases, with exports up 12 per cent, although Meat and Livestock Australia reported that last month’s steers prices were 24 per cent above the corresponding period in 2013.
An MLA market analyst commented: “The strong May result also occurred despite the beef bans placed in early May as result of the atypical BSE case in Mato Grosso state in mid-April.”
“With the World Cup starting next week and presidential elections in October, domestic consumption is forecast to increase substantially, which is expected to help sustain both cattle and beef prices domestically.”
Brazil’s weaker currency, down 15 per cent year on year, has combined with strong international demand to help export this spring.
TheCattleSite News Desk