Brazilian agribusiness markets show mixed commodity trends

The Brazilian agribusiness sector shows mixed trends across key commodities. In the livestock market, cattle futures on the B3 remained stable following significant gains in August. While the physical market for fat cattle saw prices stabilize due to low transaction volume and reduced demand from meatpacking plants, the premium for calves reached a nearly five-year high in August, driven by rising grain prices for corn and soy.

In the dairy sector, the average price of raw milk in Brazil rose in July, driven by demand for UHT milk and comfortable stock levels, despite a year-to-date decline in the milk collection index. However, increased imports of milk powder and cheese have pressured domestic negotiations.

In the soft commodities market, Arabica coffee prices saw an increase, while Robusta coffee experienced a slight decline. Additionally, crystal sugar and corn prices showed upward movement in the São Paulo region.