Heated market and fair offer lift prices for pig

Sao Paulo-the results obtained in the pigs since the beginning of this year show that there is a combination of an increase in exports, domestic demand and offer. Factors that place the producer''s remuneration at a high level.
For the second time in the historical series of the Center for advanced studies in applied economics (Cepea), measured since 2004, the price of live animal pay suinocultor overcame the average of $5 per kilogram in major supplying regions. Some businesses were conducted around 5.30 R$, nominal value that was not seen since 2014.
"With the crisis of feed inputs lived last year, many breeders went out of the market and now these animals are needed. Who was going to make money, "says the Chairman of Central Cooperative Aurora foods, Mario Lanznaster. The Aurora is the third largest supplier of processed in Brazil and one of the major exporters of fresh meat in the country.
Even with the removal of pig farmers, the Country produced 3,700,000 metric tons last year, 2.41% in 2015, according to the Brazilian Association of Animal protein (ABPA). Therefore, the producer who remained in activity had increased in the business. For this year, the expectation of the entity is up to 2% gain in national offer.
The availability offered grew, but is still considered fair in relation to demand. Lanznaster account that animals are going to slaughter and, consequently, between 8% and 10% lighter to meet consumption. "When there is an imbalance, things tend to fit with price and that''s what''s going on," he explains. Independent producers and creators of piglets are the most benefited amid the current scenario.
Outside, a move pulled by Russia, China and Hong Kong brought cheer to the Brazilian sales. Preliminary information of the ABPA show that fresh trading totaled 54500 tons in January, 39.3% above the volume registered in the same month of 2016.
In foreign exchange revenue, the jump was even greater: 76.2%, due to $124,600,000 against $70,700,000 invoiced in January last year. The actual billing, for your time, was flattened by the weaker dollar and stood at R$, up 39% 398,500,000 in same range evaluated.
"We know that''s not a sector thing currency, but our balance to maintain competitiveness and the remuneration of the chain is the exchange rate of R $3.50," punctuates the ABPA markets Vice President, Ricardo Santin. Yesterday, the currency transitioned 3.10 and 3.12 R$ R$. "The dollar is low, but it''s better to sell than to let excess product here," adds the President of Aurora.
ABPA Executive highlights the return on the acquisition of players such as Singapore, Angola and neighbouring Argentina. For him, the increase in volume spoke louder, even in real environment more valued. In the case of the Chinese, a significant event was the expansion of avian flu cases, preventing the advancement of local production and contributes to the generation of demand to other proteins on the market.
In view of all the factors that paddling in favour of pig farming, Santin believes in return of creators who left the activity. If this occurs, changes in supply can only be observed after six months, a period necessary for the completion of a cycle of activity.
For the next 60 days, Lanznaster bet that current prices should wane, because there is also who is holding the sale to take advantage of the lower costs with corn for feed, strategy that does not hold for long. The cereal is up 14% cheaper.