Brazil: Chinese demand will be the tipping point for ox prices

Published 2023년 1월 3일

Tridge summary

Live cattle prices in Brazil fell in 2022 due to increased supply, a trend expected to continue in 2023. Despite this, demand remains uncertain. The country's beef exports hit a record 2.16 million tons from January to November 2022, with December numbers still pending. The main focus for 2023 will be Chinese demand, which could lead to a 50% growth in food app orders in major cities, despite COVID-19 challenges. Brazil's cheap beef prices make it a favored supplier, especially with the US facing a livestock cycle deficit. However, the country is also looking to diversify its markets by negotiating access to South Korea and Indonesia.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

After rising for three years in a row, live cattle prices ended 2022 lower than they started, according to Datagro. The consultancy reinforces that the decline stems from the gradual increase in the supply of animals, a reflection of the change in the livestock cycle. It is virtually certain that cattle availability will increase in 2023, but there are doubts on the demand side. Datagro's indicator for the arroba traded in São Paulo dropped 14.2% in the year and stood at R$ 289.90 on December 30th. The value is based on an average of the last three business days until the disclosure date. Even so, the average for 2022 rose 1.6% compared to 2021, to BRL 311.50 per arroba. “The offer has increased and tends to continue growing”, reinforces João Otávio Figueiredo, research leader at Datagro Pecuária. The company avoids making price projections because its indicator is used to guide negotiations between cattle ranchers and the industry. On the demand side, domestic consumption ...

Source: Beefpoint