Finished male cattle prices remain firm in the Brazilian market at the end of February. The CEPEA/ESALQ Indicator for the state of São Paulo traded above R$/@ 330 for virtually the entire month and accumulated a 7.1% increase through February 24.
According to Cepea, the combination of limited supply of finished animals and sustained demand, both domestic and external, continues to support the appreciation of the arroba. Brazilian beef exports are posting record performance at the start of the year, reinforcing price support for cattle.
In the replacement market, prices are also rising. The value of 8- to 12-month-old Nelore calves in Mato Grosso do Sul increased 4.6% through February 24, reflecting stronger interest in securing future supply amid firmness in finished cattle prices.
In the coming weeks, the market will remain attentive to the pace of shipments, the entry of feedlot cattle, and domestic consumption behavior after Carnival and during Lent. These factors will be decisive in determining whether the upward trend in cattle prices can be sustained.
Source: Cepea.
