Driven by limited supply of calf and fed cattle, coupled with firm domestic demand and high volume of beef exports, Brazilian cattle prices rose in 2013 and new nominal records were observed, according to Cepea, the research centre linked to Sao Paulo University.

For the fed cattle, in December, quotes were near the nominal record of Cepea's historical series, started in 1994. On December 23, the ESALQ/BM&FBovespa Index (São Paulo State) closed at BRL114.39 (US$48.45) per kilogramme, the highest nominal level of 2013 and very close to the record of the series, of 114.48 reais, observed in November 2010.

With regards to beef carcass prices traded in the wholesale market of the Greater São Paulo, the average on December 19, BRL7.75 (US$3.29) per kilogramme, reached a nominal record – Cepea series started in 2001 for this product. As for calf, the ESALQ/BM&FBovespa Index (Mato Grosso do Sul State) reached BRL874.30 (US$370.31) in December 23, the highest level of Cepea series for this product, also in nominal terms.

Data about livestock in Brazil have not been released yet, but agents surveyed by Cepea say that the supply was limited in 2013. In 2012, unfavourable weather conditions reduced the livestock. According IBGE (Brazilian Institute of Geography and Statistics) data, the livestock in Brazil in 2012 was estimated at 211.28 million heads, 0.7% lower than in the previous year.

In regard of the swine market, 2013 was positive for the Brazilian swine sector, in spite of some problems along the way. Hog and pork quotes hit nominal records in the domestic market, dollar valuation against real favoured the revenue obtained with exports (mainly in the second semester) and corn quotes dropped significantly, reducing production costs. On the other hand, the decrease of shipments to Ukraine affected the domestic market, pushing up the supply.

2013 has been a good year for poultry producers. Chicken and broiler quotes hit the highest nominal levels in the historical Cepea series (started in 2004), corn prices (one of the major inputs used in the activity, along with soymeal) decreased, favouring the purchase power of chicken producers, and the revenue obtained with Brazilian shipments of broiler hit a record.

Source: CEPEA/ESALQ