Fat cattle remain steady with support from exports; but for how long?

Cattle slaughter remains heated in Brazil and is expected to exceed 40 million head by 2025. Last year, according to data from the Brazilian Institute of Geography and Statistics (IBGE), the total was 39.7 million head, the highest result in the historical series. Amid this scenario, the country is also experiencing a positive moment in beef exports. According to Fernando Iglesias, coordinator of markets at the consultancy Safras & Mercado, the impressive performance of shipments contributes to the prospect of higher prices for fattened cattle in the last two months. “This is a result of the good performance of exports and the heating of the internal market, opening a wider range of possibilities regarding adjustments,” he says. However, the analyst notes that despite the high prices, the increase in supply will limit more significant revaluations. “We should see higher values, yes, but without explosion. Nothing much beyond what we already observe today,” he adds. Exports to ...