News Oceania n°16/2014

Period: July 21 – August 1, 2014

AUSTRALIA

• Milk production: is about steady with recent week’s; Australia’s milk production for the 2013/2014 season was +0.4% compared to the previous season.

NEW ZEALAND

• Milk production: is near the seasonal low point; the season 2013/2014 ended positively with a sharp increase of +9.4%.
• Weather situation: mild winter weather continues and is benefitting dairy operations and prompting good grass growth on pastures.
• Milk producers: dairy farmers have been cautioned by some cooperatives that milk pricing forecasts have been cut, due to the decline in dairy product prices and decreased demand from China.

MILK PRODUCTION

• New Zealand *: +9,37% (Jun 13 – May 14 vs. Jun 12 – May 13)
• Australia *: +0,41% (Jul 13 – Jun 14 vs. Jul 12 – Jun 13)

BUTTER (82%): steady prices; light trading; interest for butter is improving from Russia, Middle East and North Africa.

CHEDDAR CHEESE: the recently concluded contracts with Japan have provided market stability; export demand is improving from Korea and Southeast Asia, apart from Japan. If WMP prices remain low, some milk flows could be diverted from WMP production to cheese production.

SMP: steady prices; good demand interest coming from Southeast Asia.

WMP: significant decline in prices; milk production remains at seasonally low levels with more of the milk flow being channeled to SMP and Butter production; weak demand from China.

Dairy product stocks are generally tight in Australia, while supplies in New Zealand are readily available also for the spot market.

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

CLAL.it – SMP prices in Germany and Oceania