The latest data from the Mato Grosso Institute of Agricultural Economics (IMEA) show that the corn-to-finished male exchange (boi gordo) ratio in Mato Grosso has reached its most favorable level for cattle producers in the state since 2018.
According to the institute, the forward price of the finished male averaged R$/@ 308.51 in June (up to the 27th), with a monthly increase of 1.53%. Meanwhile, the price of corn dropped by 26.74% over the same period, averaging R$ 41.20 per 60-kg bag.
This combination resulted in an exchange ratio of 7.49 bags of corn per arroba of finished male—the best ratio since February 2018, when 8.04 bags were needed to acquire one arroba. Moreover, this figure is well above the five-year average of 4.79.
The drop in corn prices is attributed to the progress of the second-crop (safrinha) harvest in the state, which has increased domestic grain availability. On the other hand, the appreciation of the finished male is supported by demand for grainfed animals during the first feedlot cycle. However, IMEA warns that the gradual increase in the supply of females could limit finished male price appreciation in the coming weeks. Even so, the current scenario favors feedlot operators, as they can reduce animal feed costs.
