Live cattle maintain firm prices in the face of restricted animal supply

The availability of cattle for slaughter and the pace of purchases by the meatpacking industries are contributing to the stability of cattle prices in the main regions.

According to a survey by Scot Consultoria, slaughter schedules last an average of eight days and export prices are around R$350.00 per arroba, in some cases there is even a premium of R$3.00 per arroba.

In the Cepea survey, live cattle prices registered slight increases again at the end of May, supported by the good performance of Brazilian beef exports and the more restricted supply of animals ready for slaughter.

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Replacement

In the replacement market, considering animals under 20 months old, calf prices have been losing strength in recent weeks. During an interview with the CNN Agro News program, columnist Lygia Pimentel highlighted that the animal's references fell by around 3% in the last 30 days, according to monitoring by Agrifatto.

According to her, the movement follows climate seasonality, as some regions of the country face drier weather, while others still record rainfall in volumes considered satisfactory.

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"We are in a phase of climate transition, with different impacts depending on the region", he said.

Despite the recent accommodation, prices remain above the levels observed last year. In the annual comparison, the value of the calf registers an increase of approximately 20%.

The market still reflects the effects of the strong sale of females recorded between 2022 and 2024, a period in which there was a greater supply of animals.

Calf prices reached lows close to R$9.00 per kilo in the most pressured moments of the livestock cycle and currently hover around R$18.00/kg.

The expectation is that prices will lose some support in the coming weeks, given the reduction in the availability of pastures and the reduced supply of food to maintain animals on the properties.

"This scenario tends to lead producers to sell more animals, increasing negative pressure on prices", concluded the analyst.

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Source: CNN