en.Wedoany.com Reported - In early May, the Brazilian fed cattle market presented a scenario of low liquidity and high caution among both buyers and sellers, with negotiations deadlocked in most livestock trading centers. Slaughterhouses postponed purchases to push prices down, while livestock farmers waited for the optimal moment. According to Cepea analysis, slaughterhouses engaged in selective purchasing, with prices fluctuating between 340 and 350 reais per arroba in regions such as the Midwest. Safras & Mercado pointed out that the national slaughter schedule averaged 7 to 8 working days, reducing procurement urgency. Furthermore, pasture degradation in the states of Goiás and Minas Gerais led some producers to supply animals earlier, temporarily increasing cattle availability.
In the key price-forming region of São Paulo state, regular fed cattle traded at approximately 355 reais per arroba, while the forward price for "China cattle" approached 363 to 365 reais per arroba. Analysts emphasized that weak negotiations reflected the extended slaughter schedule and moderate domestic consumption. In the wholesale market, beef's competitiveness declined, household purchasing power was limited, and the sales pace slowed.
However, a transaction in the Bofete region was concluded at 360 reais per arroba, involving immediate shipment with slaughter already arranged, confirmed by both buyer and seller. This deal highlights market selectivity: regular batches face pressure, but animals that are ready and available for immediate delivery can still command a premium. Analysts believe the short-term trend will persist, with the market focusing on pasture conditions, consumer behavior, export pace, and changes in the slaughter schedule. If the industry needs to replenish stocks quickly, similar high-priced transactions may reappear; otherwise, the market is likely to remain sideways.
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