Reduced cattle supply, strong beef exports, and a rising dollar drive increases in cattle prices.
Price Increases
The physical cattle market in São Paulo saw price hikes across all categories, according to Scot Consultoria. Contributing factors include reduced cattle supply, robust beef exports, and a rising dollar exchange rate.
- The price of cattle and cows rose by R$2 per arroba today (November 19) compared to the previous day, reaching R$345 and R$317 per arroba, respectively.
- For heifers, the increase was R$5 per arroba, now priced at R$335 per arroba.
- The price of “China cattle”, animals suitable for meat exports to China, also climbed by R$2 per arroba, reaching R$347 per arroba.
Market Outlook
Itaú BBA, in its latest report, emphasized that domestic demand is expected to remain solid in the short term. Limited cattle supply may lead to further price adjustments for fattened cattle.
“From the industry’s perspective, as wholesale price adjustments are passed on, we do not anticipate sudden pressure on margins. However, over the coming years, the trend points to a gradual tightening of cattle supply,” the report stated.
The bank also forecasts an increase in demand for cattle replacements as pasture conditions recover, which should boost the prices of calves and strengthen the process of retaining females throughout 2025.
