Brazil – Reduced slaughter levels stabilises hide prices
Published: 15 May, 2020
The slaughter rate in Brazil is still well below the normal levels. As reported earlier this week, the green prices have begun to stabilise after several weeks of dramatic price reductions, and in recent days the local currency has held firm against the US$, although is still well below the exchange rates of earlier in the year; this has been no bad thing for exporters. After several weeks of seeing wet-blue prices decline, with Chinese tanners being the only major outlet for material, it is good to report that the return of the Italian tanners has added some confidence to the market. Tanners within Italy are reportedly now taking up the contracts that were put on hold during their lockdown period; it is good to note that unlike other destinations some honour remains in the business! Prices for wet-blue are now reported to be finding more stability, albeit at low price levels. Although the latest news about JBS offering to step up production of exports to the U.S. to fill in the void created by the closure of many slaughtering plants, will only add more hides into the Brazilian and other Latin countries supply chain, and with more hides comes more price pressure. To read more click here.