Following declines in October, Brazil's fed cattle and beef quotes are relatively firm in November, surpassing prices in the same period of the year before.

The ESALQ/BM&FBovespa Index (São Paulo State) for the fed cattle averaged BRL108.25 (US$47.56) on November 19, upping slightly 0.5% in the partial of the month, but a significant increase of 12% in relation to the same day in 2012, in nominal terms. In real terms, the increase is 5.6%. As for beef carcass traded in the wholesale market in the Greater São Paulo, quotes averaged BRL6.98 (US$3.06 dollars) per kilogramme on November 19, upping 2.5% in the partial of the month and 8% in one year - in real terms, the increase is 3.1%.

Besides the off-season period and the smaller volume of animals in feedlots, the good performance of Brazilian exports also contributes to underpin quotes for fed cattle and beef. In October, 118,600 tonnes of in natural beef were exported, the highest volume since May 2007, when 138,200 tonnes were shipped. From January to October, 970,100 tonnes were shipped, 28% more than in the same period of 2012.

The ESALQ/BM&FBovespa Index (São Paulo State) for the fed cattle has been keeping at around BRL108.00 (US$47) since November 5, with slight daily oscillations. In general terms, the pace of trades remains sluggish. This behaviour has been reinforced by two holidays in Brazil, on November 15 and 20.

As for the swine sector, hog prices continued to move down in Brazil in early November. On the other hand, corn quotes (major component of animal feed) have been increasing. As a result, the purchase power of swine producers is downing. Comparing to the same period last year, however, the current purchase power continues at a favourable level for growers.

Hog price drops are still a result of the demand decrease in the wholesale market, because of high price levels verified in previous periods. Cepea's Grain Team indicates that the significant pace of Brazilian corn shipments and the dollar valuation against real are the main factors that push up prices. Exports, both in October and in the accumulated of 12 months, hit records, of 3.95 million and 26.3 million tonnes, respectively.

Considering the poultry market, the decrease of chicken quotes and slight price rises of corn has been reducing the purchase power of producers in early November. On November 12, it was possible to buy 5.9 kilogrammes of corn selling one kilogramme of chicken, 4.5% less than in late October. On October 31, producers were able to purchase 6.18 kilogrammes of corn selling one kilogramme of chicken. This reduction occurs after producers in São Paulo registered the best results of Cepea's historical series, which started in 2004, in nominal terms. On October 10, one kilogramme of chicken was equivalent to 7.73 kilogrammes of corn.