China embargo forces meatpackers to alter schedules

The physical live-cattle market presented mixed prices in the country’s main production and marketing regions last week. According to the analyst of SAFRAS & Mercado, Fernando Henrique Iglesias, only a small flow of business was registered. “The larger slaughterhouses are still rearranging their slaughter schedules awaiting the suspension of the voluntary embargo to China, a situation that has dominated market attention since the beginning of the month,” said Iglesias.

According to the Safras agency, the slaughterhouses are still trying to carry out negotiations below the average reference, and this movement is consolidated in Mato Grosso and Goiás. In São Paulo, Minas Gerais and Mato Grosso do Sul, the market even showed declines in recent days, but it still operates above R$300 per arroba, with only occasional transactions being carried out below this level in these states.

“For the cattle-raiser, the scenario is still complicated, considering that the costs of animal feed are quite high in 2021. Keeping animals confined ends up reducing the operating margin”, stressed the analyst.

Source: Canal Rural

To read the full original article, visit the link:

https://www.canalrural.com.br/ligados-e-integrados/embargo-a-china-forca-frigorificos-a-remanejarem-escalas-de-abate/

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