Brazilian restocker supply has been tight since early 2008, at the same time that buyer interest improved amid higher domestic and export demand.

The tight supply has been influenced by the low cattle prices of the mid 2000's which triggered high female slaughter during that period, decreasing breeding herd numbers.

Despite recent improvements in heavy steer prices, after dropping in the later part of 2008 (the result of easing demand from the domestic and export market due to the financial crisis), restocker trade volumes remain low.

Although female slaughter has fallen during the last two years, calf supply remains scarce. It is expected that supply will remain low in the short term, despite a small rise expected in April-May during the weaning season.