Six-week high for finished male prices

Slaughter cattle prices continue to rise. The average price of the finished male (boi gordo), based on Scot Consultoria’s figures —excluding the Funrural tax and with 30-day payment terms— exceeded R$ 300, a level not seen since early May, six weeks ago.

Agrifatto notes that despite this being a time of year typically marked by abundant supply, ongoing rains have reduced the availability of cattle for slaughter, forcing meatpackers to raise purchase prices to keep their slaughterhouse bookings on track. Bookings remain steady at an average of 7 business days after deals are closed.

Price strength was also supported by solid domestic demand, typical of the first half of the month. It remains to be seen how retail sales will evolve in the second half of June.

On the B3 futures market, finished male contracts trended upward through the end of last week before correcting downward. Nonetheless, June —and especially July— contracts are trading at a premium over the spot market, reflecting traders' expectations that strong prices will continue in the coming weeks.