Beef
Local carcass prices have traded sideways over the past month after showing a modest increase during June. Our view is that the increase in June is due to lower petrol prices, decreasing by more than 10% since May. This adds to the discretionary income that consumers spend on luxury items such as red meat. The rise in yellow maize prices since the notable start of June has however contributed to the loss in momentum of weaner calf prices.
Mutton
As with beef, local carcass prices have increased over the past month as discretionary spending from consumers benefited from lower fuel prices. The larger increases in mutton prices, compared to lamb, suggest that consumers are however still value-conscious.
Pork
Pork prices have shown notable increases over the past weeks. This is underpinned by seasonal market dynamics where we usually see carcass prices increasing from July throughout the second half of the year. In addition to this, higher trending maize prices apparent since the start of July are also supporting pork prices at higher levels.
Poultry
Disease issues remain a key risk for global poultry markets. New Castle disease has been reported in Brazil this week. This caused exports to be suspended which implies that around 60 000 tons per month will not be available for trade out of Brazil. This is likely to excerpt upward pressure on global prices.
Read the full report below:
2024.07.26_Agritrends_Livestock
Source: AgriTrends
