Milk gives no respite to inflation and rises again in the field – 02/28/2023 – Shuttle

The price of milk does not give respite to inflation. The value of a liter rose to R$ 2.66 in January in the field, the national average. It is the highest average, in real terms, for this period of the year according to Cepea (Center for Advanced Studies in Applied Economics).

The price paid to producers in January is up 18% in real terms compared to the same month last year.

The product, which has already been having a strong readjustment in supermarkets, should rise even more. In the 30 days ended on the 21st of this month, in relation to the 30 immediately previous, the high accumulated in the capital of São Paulo was 4.4% for long life milk.

In the last 12 months, the product weighed 27% more in consumers’ pockets, according to price monitoring by Fipe (Fundação Instituto de Pesquisas Econômicas).

The increase in the price of milk in this period of the year is abnormal, since the uptake of the product tends to be higher. This year, however, due to adverse weather, producers had a loss of 2.1% in the volume captured in January compared to December.

Ranchers also have a loss of income due to high production costs, which interferes with investments and, consequently, with increased supply. In January, operating costs rose 0.7%, according to Cepea. In some regions, the scenario is even worse. The limitation of production in Minas Gerais caused the price to rise 22% in January.

The lowest supply of milk continues in February, although Cepea still does not have the final data for the period. In Minas Gerais, milk rose again in the field, reaching an average of R$ 3.05 per liter in the first half of last month, 8% more than in January.

Weak income power and a drop in demand, however, limit industry negotiations with product distribution points.

The lower domestic supply and higher prices favor imports in the sector, which reached the equivalent of 157 million liters in January, 2.3% more than in the first month of 2022.

Grains have a general decline
The grain market had a strong drop this Tuesday (28), both in the international and national areas. Soybeans and bran recorded the main price declines on the Chicago Board of Trade.

Several factors caused this slowdown. The main one was a technical correction of prices after high increases in recent weeks, caused by weather effects in important producing countries, such as Argentina.

After a prolonged drought and even frost, concerns about the crop failure in Argentina have already been priced in by the market.

The pressures coming from the Brazilian market, due to the delay in the soybean harvest, decrease as the harvest progresses. Monitoring by AgRural indicates that the machines have already harvested 33% of the area sown with the oilseed.

Chinese demand, especially for soybeans, is weaker, and purchases from the Asian country have lost strength in the US market. Prices also drop in Brazil. In the port of Rio Grande (RS), soybeans fell to R$ 173 per bag, down R$ 3 on the day. In Sorriso (MT), the drop was R$ 2, with the value of the sack falling to R$ 143.

The soybean contract for May had a retraction of 2.2% in Chicago this Thursday; bran, 3.1%; and oil, 0.5%. Corn and wheat also followed the downward trend, as did sugar and cotton. These last two are quoted in New York.

Exemption For Unem (National Union of Corn Ethanol), the government demonstrates fiscal responsibility and maturity by determining the gradual return of the collection of federal taxes on gasoline and ethanol.

Exemption 2 The measure respects the competitiveness of ethanol compared to gasoline and establishes the parity of the previous tax burden, promoting the incentive to the biofuels chain.

PRESENT LINK: Did you like this text? Subscriber can release five free hits of any link per day. Just click the blue F below.