Brazil sees higher cattle prices

Brazilian cattle market prices have risen, driven by a low supply of animals for slaughter, according to analysis from CEPEA, the research centre of the University of São Paulo. 

The value of calf increased by 30% on the average in São Paulo State in Brazil, from 1,071.58 Brazilian Real (BRL) (US$479.45) in June 2014 to 1,394.08 BRL (US$448.40) last month. 

According to the ESALQ/BM&FBovespa Calf Index the animal was traded at 1,408.66 BRL (US$453.09) in June, 28.6% up on the same period last year and 13% up compared to December last year. 

The Fed Cattle Index averaged 146.19 BRL (US$47.02) in June, 14% up compared to the same period last year, but 1.5% down compared to December 2014 in real terms.

Wholesale market

In the wholesale market of Greater São Paulo, beef prices averaged 9.40 BRL (US$3.02) per kg in June, 13.4% up compared to last year and 0.2% down compared to December 2014.

In early July, according to CEPEA, agents were not optimistic despite the higher prices. 

Some slaughterhouses established paid leave for employees while others closed the doors.