Brazil pig prices drop steeply in May

Weak demand and high supply pressure prices
calendar icon 16 June 2023
clock icon 2 minute read

The quotations for live pigs and pork meat dropped steeply in all the regions surveyed by Cepea in the second half of May. Weak demand and high supply pressured markets. In some regions, prices hit their lowest levels this year.

At the end of the month, demand for pork products decreased in the retail market, due to the lower purchase power of many consumers. This context led slaughterers to demand fewer animals. High supply of slaughter-ready animals, as well as pork carcasses, increased pressure on values.

Between April 28th and May 31st, live pig prices delivered to meat processors dropped a steep 11% in the SP-5 region (Bragança Paulista, Campinas, Piracicaba, São Paulo and Sorocaba), to BRL 5.89/kg on May 31st, the lowest price level of the year, so far. In the Greater Belo Horizonte, values closed at BRL 5.98/kg, 7.7% down, in the same comparison, and the lowest nominal level of the year.

In southwestern Paraná, quotations decreased a steep 10.8%, to BRL 5.88/kg on May 31st. In the Serra Gaúcha (RS), quotations faded 10%, to BRL 5.93/kg on May 31st.

Lower liquidity and high supply of pork carcass from other regions, majorly southern Brazil (the top producing region in the country), at lower prices pressed down meat quotations in São Paulo State, where values are at the lowest levels of the year. In the wholesale market of the Greater SP, special pork carcass devalued 9.3% between April 28th and May 31st, to BRL 8.77/kg on May 31st.

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