After establishing itself at the end of the second week of March, the São Paulo live chicken market presented an unusual surprise: it opened the third week of the month (13th to 18th) providing an adjustment of five cents to the product – a somewhat unusual occurrence if considered ( 1) the day of the week (a Monday), (2) the time of the month (end of the first fortnight) and (3) the religious period of the year (Lent, a time of less meat consumption).
Even better, however, was the perception that a new and immediate adjustment was necessary, as supply was absolutely adjusted to demand. Thus, all expectations focused on the prospect of, on Tuesday (14), obtaining a new adjustment of five cents. Which, if it occurred, would result in São Paulo's live chicken price returning to the same value as a year ago, reducing the gap observed until then.
However, the week passed and this perspective was not confirmed. Not because the fundamentals of the market changed – which remained firm throughout the period and continued with adjusted supply – but rather because, as the second half of the month began, consumption once again showed its usual decline.
Faced with this situation and the risk of stocks being created, slaughterhouses made less use of the independent market, preventing them from obtaining a second adjustment. Therefore, with the price unchanged at R$2.75/kg, an average monthly value (R$2.72/kg) prevails so far at 2.90% lower than the February 2016 average.
Considering the product supply, the natural tendency “would be” for the current stability to continue. “It would be”, he explains, because we have no idea of the effects of the so-called Operation “Carne Fraca” on the progress of the meat market.
At first glance – and despite the “spectacularization” of the Operation and the circus-like approach of the media – the consumer understood that the cases reported were isolated, not having the dimension that was intended to be given to them. Therefore, demand tends to undergo few changes, except for the economic difficulties faced by the population. It is hoped that the same understanding will extend to the foreign market. And let all the misunderstandings created be resolved.
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