Live cattle prices continue to fall in June, pressured by the slowdown in Chinese purchases in light of the quota established by the country to control imports of the Brazilian product.
Survey released this Thursday (25) by Cepea Esalq/USP (Center for Advanced Studies and Applied Economics), the retraction of the arroba occurs even in a scenario of global beef stocks at the lowest levels since 2006 and international prices close to historic highs.
Data from the Chinese government indicate that Brazil had already used around 65% of the beef export quota to the Asian country by May.
The expectation is that the limit will be fully filled by July. As Brazilian meat takes up to 60 days to reach its destination, slaughterhouses authorized for the Chinese market have been reducing the pace of purchasing animals for slaughter.
Cepea also highlights that the control of internal stocks in China and a more cautious stance by importers have reduced the aggressiveness of acquisitions in the international market, contributing to pressure on companies.
On the other hand, the movement helped to increase the competitiveness of beef in relation to other proteins, especially pork, which had lower prices for consumers.
Cepea researchers show that, while the arroba accumulates devaluation during the month, pork carcasses lost space in the domestic market after eight consecutive months of gains compared to beef.
price drop in Greater São Paulo in June, influenced by high industrial inventories. However, the devaluation was less intense than that observed for beef carcasses and chilled chicken, causing pork to lose competitiveness.
According to Cepea, demand for pork cuts remains strong this month, favored by the typical June festivities and the colder weather in part of the country.
Even so, the increase in consumption was not enough to clear the stocks accumulated by the industry and sustain a price reaction.
With this, pork interrupts a sequence of eight months compared to beef and two months compared to chilled chicken, in a scenario in which the sharper drop in beef prices could also influence the decline in the price paid by consumers, resuming the attractiveness of beef protein on the shelves.
