The prices of cattle for slaughter in Brazil suffered a significant downward correction

Published Dec 8, 2024

Tridge summary

Brazilian cattle prices have seen a significant decrease due to factors such as increased supply and difficulties in increasing prices in the wholesale market. The strong rise in raw material prices and the peak of demand from China have also contributed to the price correction. The weakness of the real has further exaggerated the falls, with the dollar exceeding 6 reals after the government's fiscal package was deemed insufficient by the market. As a result, the price of fattened boi has dropped by 14-16% in the last week, and it is projected that the supply of meat in 2025 will be lower than in the current year, leading to higher prices on average in 2025 compared to 2024.

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

Original content

With almost uninterrupted price increases throughout the second half of this year, the prices of cattle for slaughter in Brazil suffered a significant downward correction in the last week that began to manifest itself in the futures exchange of São Paulo, known as B3. The different contracts for fattened boi on the São Paulo exchange lost 14-16% expressed in reals in the last week and this began to be transferred to the spot market. In São Paulo, the reference for fattened boi lost R$/@ 5 in the week to R$/@ 340, according to information prepared by the consulting firm Scot. The arguments that are put forward have to do with both supply and, fundamentally, demand. From the supply side, there would have begun to be a greater availability of animals from fattening pens. In the case of demand, difficulties are alleged in transferring the strong rise in raw material prices to the Brazilian wholesale market, while the peak of demand from China has already been reached. behind, since ...

Source: Agromeat