SC expects a drop in the price of milk and a record in the value of a bag of wheat

SC expects a drop in the price of milk and a record in the value of a bag of wheat
SC expects a drop in the price of milk and a record in the value of a bag of wheat

Epagri/Cepa (Santa Catarina Agricultural Research and Rural Extension Company) released the August agricultural bulletin this week. The highlights were the expectation of a drop in the price paid to milk producers, the record in the value of a bag of wheat, the high productivity of rice and the good performance of chicken exports in 2022.

The document is prepared monthly by the state agency with an analysis of the main productive chains of agribusiness in Santa Catarina.

Prices received by milk producers, which were records in August, tend to decrease significantly from now on – Photo: Freepik/Reproduction/ND

In August, the IBGE (Brazilian Institute of Geography and Statistics) released figures showing that in the first half of 2022 the amount of raw milk purchased by inspected industries in Brazil was 9.1% lower than in the same period of 2021.

This expressive reduction in domestic supply is the main explanation for the significant increase in domestic prices from May to mid-July.

Since then, prices have plummeted. As a result, prices received by producers, which were records in August, tend to decrease significantly from now on, according to a bulletin from Epagri/Cepa.

Wheat

Wheat prices in the Santa Catarina market in July had a positive variation of 2.82%, closing the monthly average at R$ 107.59 per 60 kg bag, the highest nominal value of the historical series published by Epagri/Cepa.

With the announcement of a possible resumption of wheat exports from Ukraine, prices in the international market retreated, however, they remained firm for the vast majority of the monitored states.

Production costs for this crop are extremely high. For April, the leveling price for crops with an average productivity of 3,600 kg/ha was R$ 91.44 per 60 kg bag, that is, to cover production costs, this is the minimum price that the producer should receive per each bag produced.

For productivity of 4,200 kg/ha, the leveling price rises to R$ 100.44 per 60 kg bag.

Rice

The end of the rice harvest in Santa Catarina brought good news: the high productivity of crops in Santa Catarina. Regions such as Rio do Sul, Ituporanga and Blumenau surpassed the mark of 9 tons of average productivity per hectare. The average productivity of the State approached 8.5 tons per hectare.

Regarding prices, they should continue to rise in the coming months, a typical behavior for the time of year. The trend is clear in the values ​​practiced between July and the first half of August, when they remained firm.

Chicken

This year Santa Catarina exported 595.09 thousand tons of chicken meat (in natura and industrialized), with revenues of US$ 1.26 billion, up 2% and 25.7%, respectively, compared to the same period of the year. past.

So far, the state was responsible for 22.9% of the revenue generated by Brazilian chicken meat exports in 2022.

In July, Santa Catarina’s exports of this protein stood at 87,350 tonnes, down 2.5% compared to the previous month’s exports and 4.1% compared to July 2021.

Revenues, in turn, were US$ 203.20 million, down 3.9% compared to the previous month, but up 17.9% compared to July 2021.

swine

With regard to pork, Santa Catarina exported 51.35 thousand tons of pork (in natura, processed and offal) in July, up 1.3% in relation to the previous month’s exports, but down 3.3% compared to July 2021.

Revenues were $123.48 million, down 0.5% from the previous month and 7.4% from July 2021.

For the year, the State exported 330.72 thousand tons of pork, with revenues of US$ 754.63 million, a decrease of 1.6% in quantity and 10% in value compared to the same period in 2021. Santa Catarina accounted for 57.1% of revenues and 55.6% of the volume of pork exported by Brazil this year.

cattle

In the first weeks of August, the average price of live cattle in Santa Catarina showed a small increase of 0.2% in relation to the previous month, different from the predominant movement nationally, which was down. In the comparison between current prices and those of August 2021, there is a 1.2% increase in the state average.

On the other hand, wholesale beef prices fell in the first weeks of August, compared to the previous month: -2.4% for forequarter meat and -1.7% for hindquarter meat. When comparing the current values ​​with those of August 2021, there is a decrease of 0.4% for forequarter meat and an increase of 5.7% for hindquarter meat, with an average of 2.6%.

Bean

The average price of carioca beans fell again in July, dropping 10.13% in relation to June, closing the monthly average at R$ 265.01 per 60 kg bag.

For black beans, negative variation of 5.45% in the last month, closing the monthly average at R$ 179.60 per 60 kg bag. The sector’s expectation is that the market will react with an increase in consumption, however, even with bean promotions on supermarket shelves, there is no increase in purchases by consumers.

At this moment, when we are still selling the 2021/22 bean crop, the concern is that the low prices currently practiced may reduce the intention of planting on the part of producers for the next crop.

With soybean prices on the rise, many producers will be able to increase their grain cultivation areas to the detriment of first crop beans, concentrating their bean planting in the second crop, starting in January 2023.

The article is in Portuguese

Tags: expects drop price milk record bag wheat

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