The mozzarella cheese and spot milk market, on the other hand, continues to have depressed prices.
Imports remained high in October, which has hampered firmer prices in the domestic market.
On the international market, the prices of dairy products also rose, with new increases in GDT auctions.
Despite the upward movement in the wholesale market, the milk price to producers continues to fall.
Conseleites’ signals for payment for milk delivered in October indicated a further decline in producer prices.
The factors that explain the drop in producer prices are:
- Increase in internal supply: National milk collection advanced in October, and imports are still high.
- Domestic consumption very sensitive to price: Consumers are sensitive to variations in the price of milk, which puts downward pressure on producer prices.
- Tight rancher margin: The increase in production costs has reduced the livestock farmer’s profit margin, which also contributes to the fall in producer prices.
Corn and soybeans rise, cattle recover, but livestock market still has no trend
Corn and soybean meal prices also rose in October, driven by the exchange rate and weather conditions. The planting of the summer crop continues to be delayed in the Central-West due to the low volume of rain.
In the livestock market, the scenario was one of recovery in the price of cattle, with a smaller supply of animals for slaughter and slaughterhouses paying a little more per arroba. However, the market is still trendless, with prices fluctuating widely and consumption weak.