In recent weeks, the lack of confidence in the future of the cattle market and climate change in the state resulted in low movements in the replacement market. In the same period, although the number of negotiations was low, the supply adjusted to demand allowed the prices of replacement categories to be sustained.
However, extending the analysis horizon, in the annual comparison the price of all replacement categories dropped 13.8% in Minas Gerais. Since the beginning of the year, prices have fallen by 6.7%. On the other hand, since January this year the price of live cattle has plummeted by 15.4% in the state and this devaluation has resulted in a drop in purchasing power.
The exchange ratio with lean cattle (12@) was the one that had the biggest drop, approximately 12.0%. In Jan/17, 1.39 animals were bought with the sale of a fat cattle for 16.5@ and today it is bought 1.23. For the short term, the expectation is that temperature changes may alter the market scenario and changes in prices are not ruled out.
Source: Agrolink
