Decrease demand led to restricted slaughter
13 September 2023
2 minute learn
Stay pig costs dropped within the Brazilian market in August, lowering the acquisition energy of swine farmers towards the main inputs consumed within the exercise: corn and soybean meal, in keeping with a market report from Brazil’s Centre for Superior Research on Utilized Economics (CEPEA).
Decrease demand for pork meat led meat processors to buy fewer batches of slaughter pigs, placing strain on quotations. Within the SP-5 area (Bragança Paulista, Campinas, Piracicaba, São Paulo e Sorocaba), the common worth for stay pigs in August (till the twenty ninth) closed at BRL 6.28/kg, 5.4% decrease than that from July.
Out there of corn, values closed 3% decrease than the common from July, at BRL 53.32 per 60-kg bag (till August twenty ninth). Strain got here from the progress of the harvest of a file crop. Nonetheless, it is very important spotlight that corn devaluations weren’t sufficient to underpin the acquisition energy of farmers towards this enter, since stay pig devaluations have been steeper.
Alternatively, for soybean meal, excessive demand – primarily from overseas – raised each the export premiums in Brazil and home costs. In August (till the twenty ninth), the common worth for soybean meal (Campinas, SP) closed at BRL 2,253.47/ton, 0.5% greater than that from July.
In that state of affairs, and contemplating the animals bought within the SP-5 area and the inputs traded within the spot market of Campinas, on the common of August (till the twenty ninth), farmers have been in a position to buy 7.07 kg of corn by promoting a kg of stay pig, 2.5% lower than that from July. Of soybean meal, farmers have been in a position to buy 2.79 kg, 5.9% lower than that from July.
(BRL 1 = USD$ 0.20)
