March 11, 2011

Brazilian beef exports recover in February

Brazilian beef exports recovered during February, increasing 29% on the previous month, to 67,000 tonnes slaughter weight, however, despite the increased volumes during the past month, shipments continued to track well below 2010, with February exports down 10% year-on-year.

Even with the higher February shipments, export prices remained unchanged from the previous month, averaging US$4,846/tonne. Reflecting the significant improvement in demand over the past year, and tight beef supply, average export prices for February were up 36% on-year.

Cattle prices in Brazil have also kicked significantly, with heavy steers prices for February averaging US$2.08/kg liveweight - up 49% on-year. Assisting the higher prices in February was robust demand from the domestic Brazilian market, which continues to attract beef away from export markets.

Despite some disruption to trade at the beginning of the month due to protests in Egypt (Brazil's third largest market in 2010), overall volumes were not significantly affected, with trade resuming quickly once the political tension eased. According to Brazilian government officials, a neutral political position by the new Egyptian government should benefit trade with the region.