Prices deepened the downward correction

Trump’s announcement of a 50% tariff on Brazil came at a very inopportune time for the Brazilian livestock sector, as the price trend was already downward and the potential withdrawal of its second-largest foreign customer only exacerbated it.

There was a widespread drop in finished male prices both in the spot market and in futures, and beef prices also fell in the wholesale market, further affected by the arrival of the second half of the month, which usually sees lower domestic demand.

The average price of finished male cattle with 30-day payment and exempt from Funrural, based on references from consulting firm Scot, fell by R$/@ 3.5 over the week to R$ 293.7. In São Paulo, the “common male” lost R$/@ 5 on the week, as did the “China male.”

On the São Paulo B3 futures exchange, finished male contracts deepened the downward correction since the end of last week, after export-oriented slaughterhouses pulled back from purchases following Trump’s announcement of a 50% tariff on products imported from Brazil starting August 1. The August contract fell to the lowest level so far this year, with a correction of R$/@ 9 for the week.

According to Agrifatto, the booking period remained stable at nine business days, although it seems likely to extend in the coming days if exporting slaughterhouses maintain their stance of staying virtually out of purchases.