Period: October 30 – November 10, 2017
Pasture and forage conditions are improving in South America, especially in Argentina where widespread showers increased moisture.
The southeast region of Brazil, where the main dairy states are located, one year ago was harmed by a severe drought. The situation has steadily improved since then, and seasonal rainfalls are currently present in that region.
As year-end celebrations are close, milk and cream inquiries from cheese and butter producers are becoming robust in Argentina, Uruguay and Chile. Condensed milk processing is very active in order to produce dairy dessert favorites.
Liquid milk market is stable in Brazil, while the cheese market is strengthening. The demand for milk powder imports is improving as supply is becoming lower.
According to USDA, after 20 days of suspension the Brazilian government released milk from Uruguay at the end of its technical audit to the Uruguayan dairy, which was intended to gather enough information to determine if Uruguay triangulated the milk exported to Brazil in the past.
SMP export prices increased in South America, in line with pricing trends in the last GDT event. SMP production is lower as less condensed skim volumes are moving into dryers and SMP inventories are becoming tighter.
WMP export prices are steady to lower, in line with recent GDT results. Overall, WMP production is ongoing. However, WMP supplies are becoming lower In Brazil.
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