August 5, 2013
Brazil's beef export price down 8.4% due to dollar valuation
Over the last 12 months, the average price of beef exported by Brazil dropped 8.4% in dollar which was quoted at US$4,735/tonne in May 2012, and, in June this year, US$4,354/tonne.
On the other hand, prices are stable (+0.4%) at BRL9,448/tonne (US$4,129) in June 2013 against BRL9,410/tonne (US$4,112) in May 2012. This fact shows that the dollar valuation against real has off-set price drops of beef in dollar. In 12 months, dollar quotes increase 9.6%, changing from BRL1.98 (US$0.87) in May 2012 to BRL2.17 (US$0.95) in June 2013.
According to Cepea researchers, price decreases of exported beef may be attributed to the slowdown of global economy, mainly of emerging countries, such as China. In spite of the unfavourable international scenario, Brazil has been able to keep the volume of fresh beef shipped.
In total for the first semester, Brazilian beef exports generated US$2.75 billion of revenue, a record for the period. As for the total obtained in the first six months of last year (US$2.4 billion), the increase was 14.6%. As for the volume, the total was 620,500 tonnes, up 22% compared to January-June 2012 (508,200 tonnes) - Secex (Foreign Trade Secretariat) data.
In Brazil, beef carcass quotes in the wholesale market of the Greater São Paulo up 6.7% over the last 12 months, changing from BRL5.93/kilogramme (US$2.60) in May 2012 to BRL6.33/kilogramme (US$2.77) in June this year, in nominal terms. As for fed cattle, the ESALQ/BM&FBovespa Index (São Paulo market) moved up 6.3% in the same period, changing from BRL93.13 (US$41) to BRL99.00 (US$43) in June.
At the end of July, the pace of trades was slow in the fed cattle market. The slaughter-ready animal supply continued lower compared to the demand, bringing difficulties for trades in the beginning of August.
In the swine sector, hog prices moved in late July, mainly in São Paulo. Quotes were hovering around BRL2.77/kilogramme (US$1.21) until July 25, and changed to BRL2.94/kilogramme (US$1.29) on July 26. On July 31, some trades were closed at BRL3.04/kilogramme (US$1.33).
According to players surveyed by Cepea, price rises are attributed to the smaller supply of animals with desirable weight to be slaughtered in São Paulo. In other regions surveyed by Cepea, agents say that the demand for animals has increased and prices have moved up.
As for the poultry market, broiler and chicken prices upped in July in most regions surveyed by Cepea. Most significant price increases of broiler were registered mainly in São Paulo, where the production was slightly smaller due to the decrease of the output of chicks.
