Cattle prices rise in Brazil amid reduced slaughter scales

The cattle market in Brazil is showing signs of strength, characterized by rising prices for fat cattle and a reduction in slaughter scales. In Mato Grosso, the price of cattle on credit rose by 2.30% in late September, reaching R$ 331.78 per arroba. During the same period, slaughter scales decreased by 7.95%, indicating that meatpacking plants have less flexibility in their schedules and a greater need to purchase animals to meet production targets.

Analyst Fernando Henrique Iglesias from Safras & Mercado notes that while large industries are operating comfortably due to their own feedlots and partnerships, small and medium-sized meatpackers are facing more difficulty completing their programming. This tightening of supply is supporting firm prices in the short term.

Regional price variations were observed across major producing states. In São Paulo, the average price reached R$ 365.33, while Mato Grosso recorded R$ 340.61. Although prices are rising, the wholesale beef market faces competition from other proteins, particularly chicken. Looking ahead, the entry of animals from feedlots may increase availability and potentially limit further price increases.