Brazilian beef sector retains over R$1,000 per‑head profit as cattle prices fall

In June, profitability of Brazilian cattle confinement remained above R$1,000 per head, with the Center‑West averaging R$1,053.25 (+1.56%) and the Southeast R$1,007.41 (‑10.36%). The margin resilience was driven by reduced feed costs, especially as the second corn harvest lowered ingredient prices, and by improved production efficiency.

At the same time, B3 futures for the boi gordo (cattle) contract are rising. The October contract traded above R$350 per arroba, indicating market expectations of higher prices in the latter half of 2026 despite a physical market decline. The spread between calf and adult cattle prices stayed elevated but began to ease, pointing to short‑term pressure on calf prices.