Downward pressure on cattle prices persists

Slaughter cattle prices remained under downward pressure this week. Based on Scot consultancy references, the finished male price fell R$ 6 over the week in Brazil’s main cattle producing states to R$/@ 298.6, taking the three week decline to R$ 15.7 (5.0 %).

Agrifatto said the end of the high season is boosting the supply of slaughter animals, giving packers more comfortable positions. Bookings have lengthened by one day to a national average of 10 days, and some plants have stepped out of the market, adding further downward pressure.

On B3, finished male futures prices dropped about R$/@ 9 on the week across all contracts.

Retail beef sales were judged very positive over the Mother’s Day weekend, but Agrifatto expects a softer market in the second half of the month, a pattern that usually follows the passing of wage payment dates.