Brazil: End of August showed imbalance between supply and demand for pigs, with pressured prices

Published Sep 12, 2022

Tridge summary

In August, the average price of live hogs in the independent market saw a rise, despite a sharp decline in demand leading to an imbalance in the domestic pork market. This imbalance resulted in lower values for pork products from the South to the Southeast. However, despite the drop in prices in the last week of August, the monthly average price of hogs in the SP-5 region increased for the sixth consecutive month, reaching R$ 7.31/kg, a 1.4% increase from July and a 5% increase from August 2021. Similarly, in Ponte Nova, the monthly average price also increased, reaching R$ 7.49/kg, a 4.7% increase from July and a 6.1% increase from August 2021. Prices for pork cuts in São Paulo fell in the last week of August due to weak demand and increased supply, but both cuts still saw price increases compared to July.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Heated sales and the consequent appreciation of live hogs during the first half of August surpassed the price declines observed in the second half of the month. Therefore, in August, the average value of the animal traded on the independent market was above the one registered in July. In the last days of the month, live prices fell with some force in practically all the regions monitored by Cepea, reflecting the weakening of the demand for pork, influenced by the decapitalization of most of the population. With lower demand, there was an imbalance between supply and demand in the domestic market. Employees consulted by Cepea reported that pork products from the South (the main producing region) arrived in the Southeast with lower values, reinforcing the devaluation of the local product. In this scenario, the average price of hogs placed in the SP-5 region (Bragança Paulista, Campinas, Piracicaba, São Paulo and Sorocaba) dropped a strong 6% in the last week of August (from 24th to ...

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