The wind has changed for the finished cattle market

Finished cattle prices in Brazil ended a five-week streak of gains—during which the finished male rose by R$/@ 26—and turned lower this week. A larger supply of animals at the end of the marketing season put buyers in a more comfortable position, Agrifatto said.

The average price of the finished male in the main exporting states, based on Scot Consultoria quotes net of the Funrural tax and for 30-day payment, fell R$/@ 3.7 on the week to R$ 310.6.

The clearest downward move late last week was on the B3 futures exchange, where the June contract led the decline with a drop of R$ 10 over the week and R$ 16 over the past two weeks. This prompted more selling interest from producers in the spot market, allowing packers to extend bookings (Agrifatto puts the nationwide average at nine working days) and purchase at lower prices.

“Even if beef consumption rises during the first half of May, it is unlikely to ease packers’ pressure for further cuts in arroba prices as the month goes on,” Agrifatto said, adding that prices in May are historically lower than in April.