The market lost strength and the upward trend in wholesale beef prices, which lasted three weeks, came to an end. Although the decline in prices over the last seven days is small, 0.1%, it is a change in behavior.
In one month, or since the sales margin of industries that carry out boning reached 43.0%, the total revenue of slaughterhouses, considering all products from slaughter, fell by 1.0% while the arroba accumulated an increase of 10.3% .
Leather and tallow, which became 5.9% cheaper, and offal and by-products, whose price fell by 7.9% in the period, contributed to the drop in the remuneration of these agents. Boneless meat prices remained practically stable.
This dropped the industrial margin by almost 15 percentage points, reaching 25.0%. Although still above the historical average, the industries' cash flow has suffered a significant reduction, not to mention that idleness is high due to the recent lack of raw materials, reaching 50.0% on some days this month, which makes it even more expensive. operation.
This “lack” of cattle was not enough to regulate the market, to find an adjustment with the existing demand. At some point, if the difficulty in passing on costs for meat and other products sold by slaughterhouses continues, this should limit the appreciation of the beef price.
Source: Agrolink
