Second week of declines in fat cattle prices

The usual increase in domestic demand following early-month salary payments was not enough to reverse the downward trend in slaughter cattle prices. The fat male (boi gordo) fell for the second consecutive week. According to consultancy firm Scot, the average price in the main cattle-producing states — for 30-day payment and excluding the Funrural tax — dropped R$ 3.2 during the week to R$/@ 297.2; compared to two weeks ago, the decline totals R$ 6.6.

The wholesale beef market in São Paulo also posted lower prices last week, which is unusual for the beginning of the month.

Slaughterhouse bookings were extended by another day and now average 9 business days across the country, according to Agrifatto. “The presence of grainfed animals in slaughter schedules is a factor supporting this trend,” said the consultancy.

On the B3 futures market, the trend for fat cattle also pointed downward. The steepest drops were seen in the first two contracts, July and August, with declines of R$/@ 5–6, narrowing the premium over spot prices. Datagro’s reference for the futures market stood at R$/@ 312.7 at the close of last week, meaning the premium for late August is now under R$ 6.