Fed cattle prices in Brazil have been showing a recovery trend in most livestock markets, amid a scenario of ample cattle supply but also heated demand.
In the past month, the Datagro beef indicator with reference in São Paulo advanced 1.4%, closing Wednesday (24th) with an average of BRL 236.07.
Speaking to the Brazilian website Globo Rural, the head of Datagro Livestock, João Otávio Figueiredo, said that although the supply remains strong, demand is resilient in the domestic market, where beef is competitive. Production has also been channeled towards exports.
The exchange rate has favored the external sales of the Brazilian protein. China continues to stand out among buyers, although Brazil has been striving to diversify export destinations, with shipments to Mexico, for example.
Although there is still an impasse over export prices to the Chinese market, in volume, Brazilian exports of beef have been intense in April, signaling a monthly record.
The Center for Advanced Studies in Applied Economics (Cepea) reports that, based on federal government data, daily shipments exceeded 10,000 tons until the 19th, totaling more than 155,000 tons sent abroad. That would already represent the second-best April in history, even with seven days left for the total count. In April 2022, a historical record for the month, the daily average was 8,290 tons.
According to Cepea researchers, the current volume should help balance the domestic supply, showing signs of more firmness in prices in the physical market in the short term.