In Brazil, the cattle exchange ratio is the worst of the year

Average prices for live cattle have been operating below R$300 since the last week of October, pressured mainly by the greater supply of animals for slaughter. The partial average of November (until the 22nd) is at R$ 282.04, 5% below that of the previous month, 10.7% lower than that of November/21 and the lowest since November/19, when, It is worth remembering that cattle prices started a strong upward movement. Calf prices, on the other hand, have been showing some stability, supported by good rainfall volumes, which favor pastures and tend to heat up the demand for terminators for new batches of animals – for practically seven weeks, the ESALQ/BM&FBovespa Calf Indicator has closed in the houses of BRL 2,300/head and of BRL 2,400. In view of this, Cepea calculations show that the current exchange ratio is the worst for cattle ranchers in 2022. In the November part, the finishing producer needs 8.68 arrobas of fat cattle from São Paulo to buy a calf in Mato Grosso do Sul, 5% more ...