The cattle-to-corn exchange ratio improved in Mato Grosso during May, supported by a sharper decline in corn prices than in fed cattle values, according to Imea.
Through May 22, fed cattle traded at an average of R$/@ 348, down 2.0% from April, while corn averaged R$ 43.42 per bag, a monthly decline of 4.9% driven by harvest progress and increased grain supplies.
As a result, the exchange ratio reached 8.02 bags of corn per arroba, up 3.1% from the previous month. On an annual basis, fed cattle prices have increased 14.6%, while corn prices have fallen 22.7%.
According to Imea, the improved ratio has strengthened cattle producers’ purchasing power and enhanced the economics of acquiring feed inputs for intensive production systems.
