September 22, 2006
Brazil's cattle prices surge as supply tightens
Brazil's cattle prices are hitting year-long highs as ranchers lowered the herd count, according to livestock consultancy Scot Consultoria.
Livestock consulting firms have been expecting a rise in prices since June after the slaughter levels fell as farmers kept them in fields to breed as sale of cows have outnumbered bulls all year.
The market has seen the worst of price declines so expectations are very good going forward, said Alcides Torres, a livestock market analyst at Scot Consultoria. Prices hit their lowest level this year in late June, hitting BRL49.64 per 15-kilogrammes (US$22.44). Torres said he expects prices to reach BRL65.00 per 15-kilogramme (US$29.40) before the end of the year.
Better income for ranchers is good news for Brazilian farmers as well, since many plant soybeans, Torres said.