A good part of the meatpacking industries has full stocks and complete scales to meet Mother's Day. Faced with this scenario, many slaughterhouses have already reduced their purchases of animals and this has contributed to pressure the quotations.
After the peak in prices of R$ 160.00/@ in the state of São Paulo, the market cooled down with cattle ranchers wanting to negotiate and industries retracted. “We are seeing that the scales for the next week are also comfortable and there is no competition for raw material that feeds a price escalation as we observed in the previous week”, points out the partner of Radar Investimentos, Douglas Coelho.
So far, the meatpackers are offering prices around R$ 157.00/@ to 158.00/@. “This will depend on the quality of the animal, distance from that animal and which niche the ox will be destined for. For those who export to China, it is a business that the industry can pay a little better,” he says.
With regard to demand, Coelho points out that there is not so much room for change. “We have an expectation of a slight improvement for these days and retail should look for product to supply. On the other hand, we may have a change of scenery in the supply of animals”, he says.
The trend is that the drop in temperatures at the end of May does not contribute to the retention of animals in the pastures. “If this is confirmed, we will have an improvement in the offer if the rancher decides to trade the ox or if he will bear the costs of supplementing cattle feed”, he points out.
By: Aleksander Horta and Andressa Simão
Source: Agricultural News
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