Brazil: Pork price stability and rising costs mark the last quarter of 2024

Published Oct 21, 2024

Tridge summary

The Brazilian pork market is experiencing stable prices in September 2024, despite rising production costs, due to a halt in price increases that began in June. This stability, coupled with a rise in beef prices, is enhancing pork's competitiveness. Exports, especially to China and the Philippines, have played a significant role in this stability. However, the pork industry faces challenges due to a drought in Brazil's central-western region, which could affect corn production for pig feeding, leading to increased corn prices and production costs. Despite these challenges, the pork industry's profit margins remain favorable due to the balance between hog prices and input costs, indicating that producers are closely monitoring market and weather developments to respond to any potential price fluctuations.

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

Original content

The Brazilian pork market is starting the last stretch of 2024 with stable prices, while production costs are following an upward trend. After an increase in pork prices in Brazil that began in June, this stopped in September and is expected to remain at similar levels during October. Live cattle experienced a significant increase in September, with the arroba approaching 300 reais in São Paulo. This scenario of stability in pork prices, together with the increase in beef costs, is favoring the competitiveness of pork. The price divergence between both proteins could open space for a new cycle of increases in pork prices, especially with the proximity of the end-of-year holidays, when demand for this meat usually increases. One of the key factors that have sustained pork prices in Brazil are exports, which have maintained a rate of more than 100 thousand tons per month for the third consecutive month. Between January and September 2024, fresh pork shipments increased by 5.4% ...

Source: Infopork