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Pig farmer's purchasing power increases compared to corn

The purchasing power of São Paulo pig farmers saw distinct movements in August: it increased in relation to corn, but fell in relation to soybean meal. According to Cepea calculations, by selling one kilogram of live pigs, producers were able to purchase 8.21 kilograms of corn, 2.8% more than in July. Soybean meal volume fell by 0.7%, totaling 5.26 kilograms.

The average price of live pigs in the SP-5 region (Bragança Paulista, Campinas, Piracicaba, São Paulo and Sorocaba) was R$ 8.74/kg in August, an increase of 3.2% compared to the previous month.

On the input side, soybean meal traded at R$ 1,662.12/ton in the Campinas region, up 3.9% month-over-month, driven by expectations of higher external demand for the Brazilian oilseed. Corn, in turn, averaged R$ 63.87/60-kg bag, up slightly by 0.4%.

According to the Grãos/Cepea Team, corn sellers continued to limit supply, betting on price increases with the final stretch of the harvest and increased storage. More immediate buyers faced firm prices, while others resorted to stockpiling or advance contracts.

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