The turn of the month is marked by looseness in the cattle market

The prices dropped again in this week. In São Paulo, the cattle price destined to the national market and the “China cattle” withdrew R$5,00/@.

In July, beef in natura exportation dropped in monthly and annually comparatives. There were 190,9 thousand tonnes exported, bringging up a total of 7,65 thousand tonnes by day,  representing a withdraw of 3,8% at the daily average, and of 16,6% in the comparision of june/22 and june/23.

The negative highlight, that has been pressuring the industries, is the price paid for the meat, which truned to be US$ 4,47 thousand/ton, in comparision to US$6,54 thousand/t in july/22.

Looking at the chinese market, we stand before a buyer market in terms of volume. But, the urgency and need for meat that happened between 2019 and 2021, is gone.

The pork market is has reset and the local price of the swine in China is lower in 2023. Adding up, the local currency has devalued when compared with the dollar. Meanwhile, the brazilian currency has gained value towards the north-american currency, meaning that the chinese purchasing power has declined. With that, it is natural, in a moment of better offer of meat, a bargain toward the prices.

In the national market, after a weak july, the short period brings up a good perspective for the flow in the horizon, targetting the month turn and father’s day.

The last months of the year usually bring a good performance in the national market and great exported volumes. This means that the demand can get better.

Attention though at some factors that could dictate the flow of the cattle market beside the demand: the offer of finished cattle, with spotlight to the confined animals, which is in a period of unknown perspective; the dollar; and the offer of other meat types, with emphasis at chicken meat, which is more competitve at the whoelsaler market and, with which, the risk of bird flu, can elevate punctually the offer.