Dairy prices strengthened, except for SMP [News Oceania n°11/2016]

Period: May 16 – 27, 2016

AUSTRALIA

• Weather situation: Australia recently received widespread rainfall across southern regions. The north continued drying.
• Milk Producers in the South, who have been enduring weaker milk pay prices, welcome this relief from some costs of producing. Producers in the North have had less need to purchase feed, but if drying continues and affects pastures, feed prices in the North may be increasing soon.

NEW ZEALAND

• Milk production: 1.36 million MT in April 2016 (during April 2015, milk production was 1.40 million MT). April 2016 milk solids (the sum of total milk protein and fat), 134.61 million kg, is down from 138.07 million kg in April 2015.

MILK PRODUCTION

• Australia *: -1.15% (Jul 15 – Apr 16 vs. Jul 14 – Apr 15)
• New Zealand *: -1.77% (Jun 15 – Apr 16 vs. Jun 14 – Apr 15)

BUTTER (82%): prices strengthened at each end of the price range. Butter exports from Australia January-March declined 20,1%. New Zealand exports January-April are down 5,1%.

CHEDDAR CHEESE: prices strengthened at each end of the price range. Cheese exports from Australia January-March increased 3,7%. New Zealand exports January-April increased 8,6%

SMP: prices weakened at the lower end of the price range. SMP exports from Australia January-March declined 11,3%. New Zealand exports January-April are almost unchanged at +0,2%.

WMP: prices strengthened at each end of the price range. WMP exports from Australia January-March declined 11,3%. New Zealand exports January-April are down 8,4%

In Oceania dairy commodity prices strengthened both for the nearing of the end of the milk production season and stronger prices in the EU. This is not true for SMP because Intervention pricing in the EU continues to weigh on SMP pricing in Oceania.

Note: · Assessments about market trend are expressed in US$; · * Dairy season: July, 1st – June, 30th (Australia), June, 1st – May, 31st (New Zealand).

CLAL.it – SMP prices in Germany and in Oceania

Source: USDA summarized by the CLAL Team

More informations about milk production in New Zealand and Australia are available on CLAL.it

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About CLAL Team

The CLAL.it team is composed of young people who with the help of Computer Science study the dairy market and develop tools to provide the Operators of the dairy sector with a comprehensive real-time view of the national and international market trends.