Fat Cattle Prices Expected to Drop in May, but Exports Help Prevent a Steeper Fall

Brazil’s fat cattle market showed mixed price movements throughout April. According to Fernando Iglesias, an analyst at Safras & Mercado, the first half of the month was marked by rising prices in the main cattle-raising regions of the country.

He noted that in the second half of the month, the meatpacking industry encountered a greater supply of animals to meet slaughter schedules, leading to a drop in prices across much of Brazil, especially in the states of São Paulo and Goiás.

Looking ahead to May, Iglesias anticipates a price decline due to seasonal trends, with the peak of fat cattle supply entering the market.

“Mother’s Day, on the second Sunday of the month, along with strong export demand, are key factors that should limit a more significant price decline,” he added.

Fat Cattle Price Changes in April

Fat cattle prices (per @, or arroba – 15 kg) for deferred payment in Brazil’s main trading regions on April 30, compared to March 31:

• São Paulo (Capital): R$ 315, down 1.56% (from R$ 320)
• Goiás (Goiânia): R$ 300, down 3.23% (from R$ 310)
• Minas Gerais (Uberaba): R$ 320, up 4.92% (from R$ 305)
• Mato Grosso do Sul (Dourados): R$ 320, up 1.59% (from R$ 315)
• Mato Grosso (Cuiabá): R$ 325, up 6.56% (from R$ 305)
• Rondônia (Vilhena): R$ 280, up 1.82% (from R$ 275)

Wholesale Market

The wholesale beef market saw strong price gains amid tighter supply conditions in April.

In May, prices are expected to rise during the first half of the month, driven by wage payments and Mother’s Day, which traditionally boosts beef consumption.

Rear quarter beef cuts were priced at R$ 25.00 per kilo, a 1.96% drop from R$ 25.50 the previous month. Forequarter cuts were priced at R$ 20.50 per kilo, up 8.11% from R$ 18.50 at the end of March.

Beef Exports

Brazil’s exports of fresh, chilled, or frozen beef earned US$1.062 billion in April (17 business days), with a daily average of US$62.438 million, according to data from the Foreign Trade Secretariat (Secex).

The total volume exported reached 211,548 tons, with a daily average of 12,444 tons. The average price per ton was US$ 5,021.20.

Compared to April 2024, the average daily export value increased by 46.1%, the daily export volume rose by 31.8%, and the average price per ton increased by 10.8%.

Source: Jornal da Nova

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