Cattle prices fall in Brazil

Slaughter prices fluctuated throughout May, declining most of the time. Between April 29 and May 31, the CEPEA/B3 index for fattened cattle (São Paulo State) fell 4% to close at BRL 321.40 per arroba (15 kg) on ​​May 31.

The pressure has come from an increase in the number of cattle, which is common at this time of the year when grazing conditions begin to deteriorate and farmers end up increasing the number of cattle for slaughter to avoid fattening costs. it is important to emphasize that feed costs were high. In addition, weak demand in Brazil increased pressure on fattened livestock prices in May.

The price of beef carcasses fell 6.3% in May, which was the sharpest monthly devaluation since January 2020, when quotations fell by 8.16%. Taking monthly averages into account, the fattened cattle index (CEPEA/B3 index) closed at BRL 323.10 per arroba in May, down 3.6% from April and down 5.21% than May/21 in real terms (averages deflated on IGP-DI). For beef (beef carcass sold on the wholesale market), the May average price closed at BRL 20.86/kg, down 2.9% m/m and 4.62% down y/y . Thus, in May, the price gap between fattened cattle and beef narrowed to 10.2 reais/arroba, with higher prices for slaughter animals. This is the narrowest gap since November 2021.

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