The live-cattle quote rose to 372.95 reais per arroba. A Cepea researcher attributed the increase to tighter cattle supply and firm domestic demand.
The price of live cattle in São Paulo state reached 372.95 reais per arroba on Monday, the highest nominal level on record, CNN Brasil reported, citing the Center for Advanced Studies on Applied Economics (Cepea) at the University of São Paulo. The price was 7.8% higher than at the beginning of the previous month.
Cepea researcher Thiago Bernardino de Carvalho attributed the rise to limited supplies of cattle for slaughter and firm domestic demand. Uncertainty over Chinese tariffs during June and July discouraged some feedlot operators from placing animals in feedlots, he said, affecting the cattle now ready for slaughter. China began imposing an additional 55% tariff on Brazilian beef above its annual quota of 1.1 million metric tons on Oct. 1; Brazilian shipments to the market had already fallen as exporters sought to avoid the levy.
Brazil’s live-cattle exports also contributed to the tighter supply. Carvalho said higher prices for calves and lean cattle raise the cost of replenishing herds and support the price per arroba. He described the domestic market as active despite payment defaults and other economic difficulties, and said elections and the World Cup were also supporting demand.
Brazil continued to ship significant volumes of beef to other markets, including the United States, he said. China’s 2027 quota for imports at the reduced 12% rate will be 1.128 million metric tons. The beef-industry association Abiec expects shipments under that quota to begin in November.