Brazil: First quarter must be the most difficult period of the year for pigs

Demand at the final end and replacement along the chain were positive in December, which favored readjustments in both carcass and live pigs, slightly improving activity margins in the period before the New Year, albeit still squeezed by the high cost of nutrition. The supply of animals was balanced, and average weight continued to be reduced, which also helped price formation. The average live kilogram traded in the Center-South of the country closed last December at BRL 6.70, up 6.1% from the closing of November, when the average was BRL 6.32. However, after the year-end celebrations, prices are already facing difficulties due to slower replenishment between wholesale and retail given the prospect of cooling demand at the final end. At the close of January 5, the Center-South average was BRL 6.43 per live kilogram. Slaughterhouses act with greater caution in the purchase of live meat, evaluating that wholesale stocks tend to increase and that the margins of meat sales must fall. ...