May 16, 2023

 

Fluctuating live swine prices and decrease in pork meat prices in Brazil

 

Brazilian research institution Cepea said the Brazilian swine market witnessed divergent trends in live swine prices across different regions between late April and early May, while pork prices experienced a decline in the wholesale market of the Greater Sao Paulo area, The Pig Site reported.

 

In the SP-5 region, including Braganca Paulista, Campinas, Piracicaba, Sao Paulo, and Sorocaba, live swine quotations increased by 2.4% from April 25 to May 2, 2023, reaching BRL 6.73/kg (~US$1.38; BRL 1 = US$0.20) on May 2nd. This slight rise in prices can be attributed to a modest uptick in demand.

 

In the Greater Belo Horizonte region of Minas Gerais, prices remained stable during this period, showing a marginal decrease of 0.1%, settling at BRL 6.47/kg (~US$1.32) on May 2. The stability was influenced by reduced demand from slaughterhouses.

 

Southern Brazil experienced a significant oversupply of swine, leading to a more pronounced downward pressure on live swine prices.

 

In the southwestern region of Parana, prices depreciated by 3.3% between April 25 and May 2 reaching BRL 6.55/kg (~US$1.34) on May 2. Similarly, in the Serra Gaucha region, quotations declined by 1.6%, settling at BRL 6.55/kg (~US$1.34) on May 2. In Braço do Norte, Santa Catarina, values experienced a marginal drop of 0.2%, reaching BRL 5.93/kg (~US$1.21) on the same day in May.

 

In the pork wholesale market, prices typically decline towards the end of the month due to decreased purchasing power among consumers. Market participants reduced asking prices in order to improve liquidity and avoid excessive inventory accumulation. The price of pork (special carcass) in the Greater Sao Paulo area fell by 0.4% to BRL 9.68/kg (~US$1.98) on May 2.

 

Despite April having fewer working days, Brazilian pork exports performed exceptionally well during the month. According to data from the Foreign Trade Secretariat (Secex), daily average shipments reached 5,200 tonnes, marking a significant increase of 24.7% compared to March and a substantial rise of 20.4% compared to April 2022.

 

Brazil's total pork meat exports in April amounted to 93,000 tonnes, a minor decrease of 2.4% compared to March, but an increase of 14% compared to April the previous year.

 

Cepea specialises in the study and analysis of agricultural markets, including commodities such as grains, livestock, and other agricultural products.

 

-       The Pig Site