Brazilian cattle feedlot to deplete in 2010

Due to lower margins, as finished cattle prices remain low, Brazilian cattle feedlot marketing is forecast to decrease in 2010, simultaneously suffering high input prices.

According to Meat and Livestock Australia, In addition to the widening gap between input and grown steer prices, the Brazilian Lotfeeders' Association (ASSOCON) estimates the rising real will continue to encourage processors to place downward pressure on finished cattle.

ASSOCON said that the only chance of overcoming these problems is by opening new markets during the year, which will increase international demand for Brazilian product, counteracting 2009's product redirection to the domestic market.

However, the Food and Agriculture Organisation has forecast that Brazilian beef exports will rebound in 2010, increasing 15% year-on-year as international beef prices rise, taking advantage of Brazil's improving cattle supplies.