Brazil’s cattle market is under pressure due to increasing supply, particularly of female animals, which has affected fed cattle prices. The CEPEA/B3 Index for fed cattle in São Paulo rose by 2.2% in January, while beef shipments increased by 26%. Retail demand showed unexpected strength despite the typical seasonal slowdown in sales.
Recent market developments in Brazil indicate a strain on cattle prices due to a rise in supply, particularly of female animals. According to a market report by Cepea, this increase has placed downward pressure on fed cattle prices across various regions. In January, the CEPEA/B3 Index for fed cattle in São Paulo rose by 2.2%, reaching BRL 324.45, while pricing for female cattle grew by 3.61% to BRL 305.59.
Despite a slowdown in beef sales during the latter half of January, a surprising demand from the retail market emerged. Generally, January is a month with lower sales activity. However, the rapid weight gain of female animals, bolstered by the recovery of pastures, has limited demand for fed cattle necessary for fulfilling delivery schedules.
In a positive note, Brazilian beef shipments have surged by 26% in the first three weeks of January compared to the same period in January 2024. This increase, reported by Secex, is helping to stabilize prices for fed cattle despite the challenges posed by higher supply and slower sales during this typically low-activity month.
The Brazilian cattle market is experiencing significant dynamics influenced by supply levels and seasonal sales patterns. Cepea’s report highlights the contrast between the prices of fed cattle and those of female animals due to an increase in the latter’s availability. Understanding supply-demand shifts, especially in the context of pasture recovery and weight gain variances, is critical for evaluating price stability in the beef sector. Additionally, the market’s seasonality impacts overall sales performance, necessitating close monitoring of shipment volumes.
In summary, Brazil’s cattle prices face challenges from rising female animal supply, which has affected fed cattle prices. Despite sluggish sales typical of January, surprising demand from the retail sector and a notable 26% increase in beef shipments are providing some price support. Observing these trends remains essential for stakeholders in the beef market as they navigate through supply and demand fluctuations.
Original Source: www.thecattlesite.com
