The combination of lower cattle prices and a weaker currency helped to kick Brazilian beef exports in August – increasing 37% year-on-year, to 90,600 tonnes swt.
However, while increased volumes departed Brazil throughout the past month, the value declined 12% year-on-year, averaging US$4.6/kg.
The Brazilian real for August averaged 22% lower compared to the same period in 2011, falling from a high of 63US¢ in August 2011, to an average 49US¢ in recent weeks.
The depreciation of the real, combined with the lower cattle prices helped to significantly improve the price competitiveness of Brazilian beef, which has been felt by Australian exporters in several markets, but most notably Russia.
Interestingly, after the lower prices in July and early August, Brazilian cattle prices have reportedly increased 5% in recent weeks, with the expectation of an improvement in domestic beef demand.
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