June 25, 2013

Brazil's pork prices decrease due to low demand

The analysts at Cepea, the research centre linked to Sao Paulo University, reported that Brazil's declining pork prices was due to falling demand over recent months.

Hog and pork quotes have continued to decrease in almost all regions surveyed by Cepea in mid-June. However, in the past month, there has been an upward trend in many areas.

In regard of main inputs used in the swine production, soymeal quotes have increased sharply, while corn prices are down. In this scenario, in the month of June, the purchasing power of producers has decreased compared to soymeal. In Chapecó (Santa Catarina State), where hog prices are also dropping, there are decreases compared to corn; in Campinas (São Paulo State), the ratio between purchased corn with hog sales has increased in relation to late May.

Recent hog price drops have been mainly attributed to the weak demand for pork. Moreover, agents from the South-eastern region report that the competition with the pork from the South Brazil has increased.