Strong exports provide relief to the cattle market

Strong beef exports continue to be the main pillar supporting the market in a period of increased supply of finished animals, according to Itaú BBA's Monthly Agro Report. The IBGE pointed out that slaughters grew by 7% in the third quarter, with a highlight for September, which registered an increase of 13% compared to the same period last year. Preliminary data from the Federal Inspection Service (SIF) suggest that October maintained an intense pace, with an advance close to 15% compared to the same month of the previous year. The report highlights that the good margins obtained by feedlot operators throughout the year — especially those who used risk management tools — stimulated the entry of a significant volume of intensively finished cattle, further reinforcing the supply at the end of the dry season. The futures contract expiring in October, for example, reached trading above R$ 330/cwt during most of the months from March to August and ended October at R$ 317/cwt, ...