By Garra - 06/11/2023 in Brazil and World

Feed cattle prices in Brazil to remain sustained until December

The prices of feed cattle in Brazil should remain sustained at least until mid-December, according to an assessment by Scot Consultancy. After a strong rise seen in September, the price per arroba is now in a period of greater stability as slaughterhouses manage to extend and balance their slaughter schedules.

The arrival of the end of the year, however, brings a perspective of increased consumption by households. Factors such as the creation of temporary jobs, bonuses, and the payment of the 13th salary tend to stimulate the demand for beef, with reflexes throughout the supply chain.

“The Retail sector is betting on stronger consumption at the start of November, with heated demand and better prices to negotiate with retailers. In this sense, the cattle market should remain firm. We have prices moving sideways, and this should persist until mid-December,” stated Scot analyst Felipe Fabri.

Scot’s survey shows stability in most of the trading areas. In the north of Minas Gerais, the arroba of cattle for the domestic market was traded at BRL 218 spot on October 30th. In Dourados (MS), it was worth BRL 232.50, the same rate as the São Paulo marketplaces of Araçatuba and Barretos.

Based in São Paulo, the indicator from the Center for Advanced Studies in Applied Economics (Cepea), which had a decrease of BRL 10 per arroba between October 26th and 27th, rose again on the 30th and closed at BRL 241.70 per arroba. In the month, the reference has accumulated an increase of 2.35%.

The forecast is corroborated by Agrifatto consultancy. In a bulletin, it states that after two consecutive weeks of price drops for all products, the expectation for the coming weeks is of recovery, with the approach of salary payments. 

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