Lower Cattle Prices to Fatten Brazilian Meatpackers’ Margins, Analysts Say

A decline in Brazilian cattle prices this year and strong demand for the country’s beef exports will widen Brazilian meatpackers’ margins in the short term, according to analysts, though weakness in the domestic market could undercut those gains.

Live cattle prices on the Sao Paulo market are on a downward trajectory, with the “arroba” – a standard 15-kilo measure used as a benchmark – trading late last week at an average of 278.79 reais ($52.87), a significant discount to the first quarter’s 332.23 reais, according to Scot Consultoria, an agribusiness consultancy.

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