News Oceania n°20/2014

Period: September 15 – 26, 2014

AUSTRALIA

• Milk production: on the rise.
• Weather situation: rainfall below normal has affected crop yields. Irrigation has begun in some areas before the typical seasonal schedule. Temperatures are warming up in major dairy producing areas, prompting increased forage growth.

NEW ZEALAND

• Milk production: is quickly rising. Preliminary data shows August milk production near 5% above year ago levels.
• Weather situation: recent rains have prompted good pasture growth on both islands.

MILK PRODUCTION

• New Zealand *: +7,82% (Jun-Jul 14 vs. Jun-Jul 13)
• Australia *: +1,47% (Jul 14 vs. Jul 13)

BUTTER (82%): prices moved marginally higher on the low end of the range; restricted supplies in Australia, partially due to increased demand for cream from cream cheese makers; supplies in New Zealand are readily available; demand for butter is good with active interest coming from the Middle East; good demand coming from Latin America for New Zealand’s AMF.

CHEDDAR CHEESE: prices are steady to firm; current production is focused on filling existing orders; good domestic demand is restricting supplies available for export; Japan and Korea are the primary destinations for current exports, while Russia imports some smaller volume from New Zealand.

SMP: prices are steady to marginally higher; expanding milk production improves production of SMP; active demand coming from the Middle East, North Africa and Asia; prices are relatively low compared to historical trends with buyers seeing more upside to the market than down; some larger volume buyers have covered their needs through Q4.

WMP: prices marginally higher; there have been some manufacturing shifts from SMP to WMP production, due to the decline in the price differential between the two commodities and also due to the increasing supplies of SMP in other global markets; price declines in recent months have prompted increased demand especially from the Middle East and North Africa; China’s trade activity in the market is increasing, but without the major waves of purchasing seen last year.

Highlight: good demand for butter with active interest coming from the Middle East; good demand from Latin America for New Zealand’s AMF.

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 – Prices of Butter (Jan-Sep) in Germany, USA and Oceania

CLAL.it – Prices of Butter in Germany, USA and Oceania