Brazilian pork and corn prices fall as demand lags and supply stays high
Live pig prices in Brazil reached their lowest real level since July 2012, with the average price in the SP‑5 market falling to the lowest recorded in May. Weak internal demand and a 15% drop in export shipments in the first half of May contributed to the decline, while producers have focused on external sales to absorb excess supply.
Pig producers report tight margins as the market is flooded with livestock and slaughterhouses remain cautious. The national average price for live pigs slipped to R$ 5.36 per kilogram, and wholesale cuts showed little movement. Export volumes of pork continued to grow, generating US$ 278 million in revenue during May, though price per tonne fell modestly.
The Brazilian corn market remained largely unchanged, with the average price of a sack at R$ 61.22 on June 3. Prices rose modestly in Goiás and Minas Gerais due to drought concerns, while other regions were stable. Export activity surged, with 250,449 tonnes shipped in May, earning US$ 66.8 million – a 267% increase in daily revenue compared with the same period a year earlier. International factors such as a strong U.S. corn crop and a weaker dollar also limited price movements.
Overall, both commodities face downward price pressure from ample supply and muted demand, while export growth provides a partial offset for the sector.