Brazil: After five months on the rise, milk price should drop by 7% in November

After five months of high, the price of milk is expected to fall in November. According to the Center for Advanced Studies in Applied Economics (Cepea), the amount paid to the producer in November, referring to the capture of October, can be between 5% and 7% below that registered in the previous month. According to the entity, the values of milk in the field obey a seasonal trend, related to the availability of rainfall and pasture. "This means that, typically, it is expected that, at the end of the year, this trend reversal will occur", he says, in a bulletin. However, in 2020, the resumption of production has not occurred intensely, since the climatic conditions were less favorable. “Even so, in the first and second half of October, there was a greater supply of spot milk (negotiated between industries) in Minas Gerais, so that the monthly average fell 16.8% compared to September / 20, going to R $ 2 , 23 / liter ”, he informs. But, according to agents consulted by Cepea, the ...