In Australia, milk production has been steady in recent months, with rainfall offsetting the impact of dry conditions in many regions and helping to check higher feed costs.

In January 2020, New Zealand milk production was down 0.7% compared to January 2019. Although the rain of the last weeks, the drought continues to be a problem for New Zealand dairy producers. The Agriculture Minister of New Zealand has now expanded drought classifications to more regions, leading to government assistance in affected areas.

Price of Dairy Commodities 

Butter prices are increasing in Oceania. The spread of Coronavirus does not seem to have slowed exports, considering that most Butter exports go to countries other than China. The prices are supported by the seasonal decrease in production. This trend is confirmed by the last Global Dairy Trade (GDT) event of March 17, which has recorded an increase of 0.3% for Butter and 1% for AMF.

Butter manufacturers are trying to fill orders, with the aim of building inventories for the next few months, where the production will reach the seasonal minimum.

Cheddar prices are decreasing. Buyers are currently well stocked and contracted for coming months. Slowed north Asian buying related to coronavirus is not believed to be much of a factor in this market. Cheddar production is simply a bit ahead of current demand. The last GDT event of March 17 has recorded an increase of the average Cheddar price of 2.6%.

Milk powder prices are decreasing in Oceania. The Coronavirus impact keeps slowing the demand of SMP and WMP from North Asia and China, and slowing Oceania’s export consequently. The results of the last GDT event confirm the decrease of milk powder prices, respectively -8,2% for SMP and -4.2% for WMP.

CLAL.it – Comparative overview of SMP prices

Uncertainty prevails on the market, the question is whether the lower export of SMP and WMP of (?) the last months will be compensated, once the normality returns.

The seasonal decrease in production that we are recording in Oceania could contain the diminish of milk powder prices. 

CLAL.it – GDT of March 17

– Dairy season: July, 1st – June, 30th (Australia), June, 1st – May, 31st (New Zealand);
– Source: USDA summarized by the CLAL Team

In Australia, January – December 2019 milk production decreased 4.3% from 2018. July – January milk production is lower of 3.7% compared to the same period of last year.

Considering the fire and drought impacts, as well as other indicators, dairy experts in Australia expect seasonal milk production to finish the production year below last season volumes. Weaker milk production is leading to dairy plant closures.

In Western Australia a combination of production costs and what is perceived as weak milk pay prices are resulting in more herd culling or outright herd sales for slaughter or export.

In New Zealand  a lower milk production is reported, which is helping to support farm-gate milk prices while the demand from China is lower, due to the impact of coronavirus.

Dry weather in the North and flooding in the South are impacting milk production. The government has formally declared drought conditions in some areas of the country, even well-prepared dairy producers are vulnerable to overwhelmingly prolonged periods of inadequate rain.

The quarantines in China have resulted in a big decline in eating out and in store food shopping in affected areas. Dairy processing is reduced and internal logistics have slowed, especially trucking.This virus confirms itself as a major unknown risk factor.

Prices of Dairy Commodities

Oceania Butter prices moved lower, mainly because of two factors. First, the lower prices in Western Europe are leading buyers on sourcing from there. Second, some buyers already stocked are more comfortable in slowing purchases in Oceania. This is occurring even as Oceania continues to experience seasonally declining milk production, leading to declining butter churning. Supplies are tight in Australia.

SMP prices are steady. Most of Oceania SMP customers are contracted. There are growing stocks of SMP in Western Europe, where the SMP price range is lower than in Oceania. The shipments to China are slowing resulting from Coronavirus side effects.

Cheddar prices in Oceania are stronger. While China is a customer for cheddar from New Zealand, the array of other export destinations keeps cheddar exports moving. Tight supplies in Australia have limited volumes available for export. Cheddar production is expected to slow down in coming months, so there is some confidence in ongoing pricing holding some strength.

CLAL.it – New Zealand Cheese Export

WMP prices in Oceania are lower. There are more uncommitted stocks available, hit by slowing exports to China attributed to coronavirus. Uncertainty over the pacing of possible future contracting is also a factor weighing on prices.

Even more uncertainty is once normality returns, will stocks move to China to make up for slowed current shipments?

The Global Dairy Trade Event of February 4 has recorded an overall variation of -1.2% compared to the previous event, confirming the decrease in prices of the dairy products.

- 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

In Australia, dairy impacts of the raging fires remain to be quantified. Producers had already been reducing herd numbers due to tight feed. The fire aftermath left many dead cows and destroyed crops, both planted and in storage. The effects will negatively ricochet in coming months, and longer.

Government officials have warned people in New South Wales to prepare for possible flooding as torrential rain continues over the weekend. Of course, this will be helpful in continuing to extinguish lingering fires, but it remains a tough season for Australian people.

Most of New Zealand is extremely dry at the moment, especially the North Island. Dairy officials expect that the drought will adversely impact milk supplies for February, and probably for March as well. Southland and the West Coast have had the other extreme recently, with some flooding from heavy rain. New Zealanders expect the dry conditions on the North Island to have a larger impact on milk production than the wet conditions on the South Island.

Heavy rains have left swollen rivers still rising in some areas. Some reports highlight that more than 100 dairy farms in New Zealand are being severely impacted by the extensive flooding. Many farms are either under water or cut off, with access roads flooded.

Farm impacted by flooding; Source: /High Country Helicopters

Prices of Dairy Commodities

Oceania WMP and SMP prices are lower. The decline is most often attributed to the impact of coronavirus, which has slowed the purchases of China. The decline in milk powder prices is confirmed by the last GDT event of February 18, where both powders decreased by -2.6%.

Butter prices in Oceania are lower according to the last GDT event, that recorded a decrease of -3.9% for Butter and of -5.5% for AMF. This decrease has approached the price of Oceania to the European ones.

Oceania Cheese prices moved higher, +5,3% at the GDT event. Oceania dairy sources are not surprised considering that production in New Zealand is ever lower and supplies have become tighter.

CLAL.it – WMP price at GDT 18/02

CLAL.it – SMP price at GDT 18/02

- 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

Australia received recent rains throughout much of the country, which led to some greening of crops and more planting. Anyway, hay availability remains tight in much of Australia and fire damage to some pastures and feed supplies is reported.

According to Fonterra’s latest report, New Zealand’s weather throughout December was varied, with warm and dry conditions in the North Island, impacting on pasture quality, and excellent conditions in the South Island, allowing for excellent pasture growth rates.

CLAL.it – New Zealand cumulative rainfall 30/01 – 05/02

Dairy Commodities Prices

The Global Dairy Trade Event of February 4 has recorded a decline in SMP (-4.2%) and WMP (-6.2%) prices, and an increase in butter prices (+0.2%), compared to the average prices of the previous event. The overall variation is -4.7%, recording the lowest average price since last September.

CLAL.it – GDT average winning price

The spread of the Coronavirus in China has affected the market, and could have impacted chinese consumption, especially during the Lunar New Year, started on January 25. This could lead to a decrease in New Zealand export, considering that China is the main importer of Milk Powder.

Butter prices moved higher. Demand is very active, but supply is tight.

Australian demand for New Zealand cheese is higher due to the disappointing Australian milk production results so far. New Zealand cheese export during the period January – December is 4.1 % higher than the same period last year. Considering this, Cheddar prices are stronger in Oceania, and this strength is expected to continue into at least February.

CLAL.it – Cheese export of New Zealand

- 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

Cows in areas threatened by fire in some cases, can be moved to safer areas. Options are limited because cows need a place where there is food, water and the possibility to milk them.

As 2019 ended, strong hay demand in Australia has become even stronger. Continuing drought in many areas, coupled with fires burning since October, contribute to this situation.

CLAL.it – Australia Wildfires Map | last update 22/01

New Zealand milk production in December 2019 is down 0.5 percent from December 2018. This results in current season milk production through December being 0.43 percent lower than this point last season. However, milk solids production is still up 0.4 percent compared to June – December 2018.

This season weather in New Zealand has been dry, with less rain than normal, negatively affecting not only milk production but also supplementary crops. That could lead to some producers having to buy imported feed at current higher spot prices, adversely affecting margins. There is still time for rain to help, but for now, uncertainty prevails.

CLAL.it – Milk Production in New Zealand

Dairy Commodities Prices

The dairy commodities prices are increasing, due to the seasonal decline in milk production and a good demand.

Production of Butter and Cheddar is focused on filling existing deals, leaving the stocks mostly steady, while there are limited stocks of SMP to meet demand from buyers.

Manufacturers tend to favour WMP production over other dairy products; nevertheless,  a decline in production has been recorded.

The Global Dairy Trade of January 21 has confirmed an increase in prices, recording an overall variation of +1.7% compared to the last GDT event.

CLAL.it Results of GDT 21/01

- 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

Milk production in Australia continues the seasonal decline. During November, milk production was 3.4 percent below November last year.

High heat records were broken in the last weeks in Victoria. Melbourne record temperatures were into the 100° Fahrenheit (38° Celsius). Current milk supplies are being impacted by the current extreme weather conditions. 

Australia continues to struggle from a nationwide fire crisis. Wildfires have been burning in various areas for months. The current focal area is Victoria and New South Wales, which areas cover together approximately 78% of Australia’s milk production. It is very uncertain how long the fires will burn, or in which direction they may move in future weeks.

Ongoing drought is pushing feed and irrigation costs higher. The result is continuing disappointing margins for some Australian dairy producers.

CLAL.it – Milk Production in Australia

New Zealand production volumes are still relatively high. Heavy rains have led to flood waters in some South Island dairy areas, stopping some milk collection. In areas where rain was not excessive, it helped keeping good pasture growth.

There is increasingly voiced concern from agricultural lenders about dairy producer debt. This has led to more conservative lending practices. Mitigating this, more strength in New Zealand farmgate milk prices is expected for the current season.

Market activity in both countries has been quiet during the two-week holiday period.

Dairy Commodities Prices

Butter prices in Oceania moved lower during the first weeks of December, and now are steady. Butter production in Australia is active, while New Zealand dairy manufacturers tend to send milk to WMP rather than butter.

Skim Milk Powder prices moved lower during the first weeks of December and now they are unchanged when uncommitted SMP supplies are unexpectedly available.

This decline was unexpected by many dairy industry professionals in both commodities prices. Global demand remains good.

In Oceania, cheddar prices are unchanged. Demand remains good, especially within Australia.

Whole Milk Powder prices moved lower during the first weeks of December and they have remained unchanged in the last weeks. New Zealand WMP production continues to be active. Extra milk is often channelled to WMP over other dairy products, as current production is needed to build stocks to meet demand when seasonal milk production declines further.

The Global Dairy Trade of January 7 has given a result of +2,8% in the average price of the different commodities. This increase is probably due to the lower availability of milk.

CLAL.it – Results of GDT January 7

- 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

Milk production in Australia during October was 5.5% below October last year. The current season milk production through October is 5.8% lower than July-October 2018.

The fires burning in Australia for weeks continue to be a big problem, and great anxiety is present.

In New Zealand, recent weather conditions are reported as decent. Forage quality is good for dairy producers. A key variable to be followed at this time is the pace of the decline in milk production from the seasonal peak.

Dairy Commodities Prices

Oceania Butter prices are lower, as butter production is close to seasonal high levels. Even if milk production has begun to decline, Butter remains available since many buyers are already covered.

Australian butter demand is steady. New Zealand Butter export is good, and stocks seem able to meet demand.

Skimmed Milk Powder (SMP) production is higher in Oceania, as demand for SMP remains firm.

Cheddar prices are stronger also thanks to an active competition among buyers. Cheese production is mostly steady as some manufacturers are keeping milk in cheese plants as a priority.

Whole Milk Powder (WMP) prices in Oceania are steady to higher. WMP production is contracting because of the lowering milk production. There is good demand for utilization in nutritional and reconstituted beverage markets for developing countries.

CLAL.it – Price of SMP in Oceania

- 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

Extremely hot and dry weather in Northern Australia has adversely impacted hay production, adding to costs for dairy producers. Hay from Southern Australia and Victoria is trucked North to help meet demand.

Rumours of possible changes to the proposed new Australian Dairy Code, which are believed to permit processors to amend contracts should unforeseeable events occur, are leading to vocal pushback by dairy producers.

In New Zealand October data, the month with peak seasonal milk production, record a decrease in volumes of 2,6%, compared to October 2018. This decrease was anticipated by some New Zealand based dairy industry people. This results in current season milk production through October being 0.68 percent lower than this point last season.

Dairy Commodities Prices

Butter prices in Oceania are lower, reflecting weaker pricing for dairy fats in the region. Churning schedules remain at or near seasonally high levels, creating an unexpected growth in current stocks.

Opposite trends for WMP, SMP and Cheddar Cheese.

With production now declining, buyers of SMP are more active, especially for the near term.

WMP prices moved higher, along with interest in stocking for coming months. The production remains seasonally strong.

Cheddar prices are higher, reversing the price trends from recent periods. Negotiations with manufacturers are just starting, or will soon begin, for second half 2020 contracts.

CLAL.it – Milk Production in New Zealand

- 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

October milk production data is eagerly awaited, month of the peak of production. With declining milk production in Australia, it will be needed an increase in New Zealand to keep the region close to production volumes last year.

Dairy commodities prices

During the last period the prices for a number of dairy commodities are higher, reflecting uncertainty over the seasonal peak production.

Butter prices are increasing, due to a strong demand. The churns are active and, sometimes, cream goes to WMP production rather than Butter.

SMP registers higher prices considering that less milk will be available, combined with a growing demand.

Oceania Cheddar prices are decreasing again, due to availabilty higher than demand . In fact, many Buyers have good cover into early 2020. Some manufacturers are considering  adjusting production lower: this could help send more milk to WMP production, where margins are very good.

WMP prices in Oceania are higher and they are pleasingly high for manufacturers. The general expectation is for WMP prices to hold near current pricing for several months. Even if the production will be easing back from peak levels, the demand remains very good.

CLAL.it – New Zealand export of WMP

- 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

Milk production in Australia is near the seasonal peak. It is considered quite unlikely for seasonal results to match last season.
Northern Australia has limited hay availability, due to dry conditions. Manu dairy producers are apprehensive that hay demand will exceed regionally produced supply. There are hay shipments from other regions.

In New Zealand most pastures are in good condition, thanks to warmer temperatures. Most plant schedules are very full right now, in particular many WMP plants are near capacity.

Dairy commodities prices

Butter prices in Oceania are higher. New Zealand production is increasing, benefitting from milk availability.

Also SMP prices are higher, reflecting strong buying interest. Most regular customers are stocked for current needs. Negotiations for deliveries in the coming months are continuing. Some plants continue to favor WMP production.

WMP prices are steady. Strong export demand has kept WMP flowing and encouraged very active production.

Oceania Cheddar prices are lower. Many Buyers are stocked for current needs. There has been a shift in milk away from some cheese plants into WMP.

CLAL.it – WMP price in Oceania

- 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

Milk production in Australia during August 2019 was -5.9% from August last year. Drought and water laws adversely impact production and expectations.
Some wildfires have been burning since September due to sparse rainfall and continuing drought. While tighter supplies have helped maintain milk prices, higher costs for feed and water have limited the ability to translate prices into higher production.

New Zealand is at the calendar point where seasonal milk production typically is at the peak. Winter was mild and pasture conditions are good.
The government develops specific proposals governing freshwater management for various purposes, such as agriculture, urban development and safe drinking water. Possible dairy requirements may limit growth, or even lead to a reduction in the dairy herd.

Dairy commodities prices

Oceania Butter prices are lower. Production is seasonally higher as milk production is near the peak. Export interest in early October is not quite what manufacturers had expected. Prices in the coming months are expected to be generally steady.

Also Cheddar Cheese prices are lower. For some Buyers, who expect available Cheddar supplies will grow in the coming months, a “wait and see” approach seems prudent.

Average WMP prices are steady. The lift in upper range price is attributed to certain Buyers seeking near term delivery, and the lower range price is attributed to strong production.

CLAL.it – New Zealand dairy export

- 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

Milk production in Australia depends on weather and water. There is some evidence of cows being moved from northern regions to southern regions with less need for irrigation. Milk pay prices are at a level that seems to be encouraging some producers in areas with less need to purchase water and feed.

Dairy commodities prices

The prices of dairy commodities in Oceania increased, with the exception of Cheddar Cheese, for which production is higher than expected.

Also prices for SMP are higher. Manufacturing volumes remain lower than they are expected to be in coming months. Furthermore, some Buyers have specific preferences for sourcing in Oceania.

WMP prices are stronger and are expected to remain in a generally steady range. Buyers are making deals and manufacturers are happy to close deals.

CLAL.it – Oceania SMP price

- 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

July 2018 milk production is -8.4% from July 2018.

High cull rates following the 2019 drought, farm retirements and relatively high input costs have impacted negatively on the milk production.

CLAL.it – Milk production in Australia

New Zealand’s July milk production is +4.6% from last year. Even if it is spring, it has been cool, with snow in some remote areas. However pastures are in good shape.

Dairy commodities prices

Average quotations of dairy commodities in Oceania have been decreasing compared to four weeks ago, but strengthening compared to the prices of Butter and SMP two weeks ago.

There are concerns among some Butter buyers that strong export demand might cause Butter to become harder to source in coming months.

Some Australian manufacturers report that not much WMP is being made in Australia now because milk is being diverted to Butter and SMP, where returns are better. Even so, SMP output remains below ideal volumes.

Much price movement for Cheddar Cheese and WMP is not expected, at least not until final September and October production data becomes available.

CLAL.it – Payout SMP + Butter and WMP + Butter in Oceania

- 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

In Australia there is a limited amount of hay available and many Producers are concerned that obtaining good quality hay will be difficult as the season progresses.

Even with relatively low early milk season volumes, in New Zealand dairy manufacturing is moving up pretty quickly. More new season manufactured dairy products are reaching markets earlier than some buyers had expected.

Dairy commodities prices

The prices of dairy products are increasing, with the exception of Butter.

Butter production is increasing noticeably and there seems to be less pressure to wrap up negotiations.

Near term demand for Cheddar helps firm prices. Manufacturing is increasing, but still seasonally low, and filling domestic needs is currently the focus.

Also demand for WMP production is very good. Even if buyers know that current availability is much lower than in coming months, they need quick deliveries, moving near term prices up.

SMP production is limited, however Buyers understand that week to week there may be some variation on output volumes.

CLAL.it – If exports to China decrease below expectations, that could adversely impact the dairy product prices and the farm-gate milk price. 

- 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

In New Zealand, pasture grass is in good condition. June 2019 milk production was +14.1% from June 2018. June is the first month of the new season and the lowest milk production month.

Dairy commodities prices

After the recent increase, the prices of dairy commodities in Oceania are steady.

WMP is typically the priority production use for milk, but at current seasonally low milk output, even many WMP plants are well below production capacity.

Very limited quantities of SMP, Butter and Cheddar Cheese are being manufactured during this low point of the milk production cycle.

Buyer interest for Butter is good and contracting is underway for future months. Spot market sales are infrequent.

- 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 – Production of cow’s Milk in New Zealand

In Australia, weather conditions are mixed. Southwest and northern areas are very wet following heavy rains. This limits new season hay availability. Parts of New South Wales and Gippsland are very dry and crops are struggling under the dry conditions.

Dairy commodities prices

Oceania dairy commodities prices firmed.

More buying interest for Butter and SMP surfaced from the Middle East and Asia, pushing prices higher. Butter output is still low this early in the production season. Light early season regional SMP production is already committed and negotiations for Q3 and Q4 are underway.

Cheddar prices strengthened. Most current low season production is already committed to customers in Australia and New Zealand. New export commitments are still developing.

WMP production has a priority for early season milk availability, however output is relatively low, this early in the season. Most Buyers are now motivated to complete 2019 contracting, giving a price boost.

- 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 New Zealand’s dairy exports, converted into Milk Equivalent (ME), increased by 17% overall, and by 22% to South East Asia and the Middle East

In New Zealand, the milk production season (June 1 – May 30) ended with an increase of +2.2%. The volumes of May 2019 recorded a slight decrease (-0.1%).

Westland Milk Products farmer shareholders have voted strongly in favour of sale to Chinese company Yili Industrial Group. A group of dairy producers has asked the government to delay closing the sale until the producers are paid.

Dairy commodities prices

Butter prices in Oceania are weaker. Buyer interest for current needs is sluggish, as most Buyers are amply stocked. While early season milk production is increasing slowly, low Butter production is destined for markets in Australia and New Zealand rather than export.

Cheddar average prices are also weaker, due to low buying interest.

Also SMP prices firmed. Enough Buyers are in the current market to nudge prices higher.

- 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

Oceania – WMP price

In Australia, cooler weather and frost have moved into some areas. Dairy Producers secure hay and feed to last through the winter. Available hay supplies are especially tight in Southern and Western Australia.

Many dairy processing plants are at low volumes for maintenance and efficiencies.

Dairy commodities prices

The prices of dairy commodities in Oceania are decreasing.

With weaker Western European Butter prices, Oceania price is weaker. In addition, some observers also believe that more Oceania Butter in storage became available to Buyers.

Schedules for SMP production are lighter as seasonal milk production is lower. Not much new SMP production is being sold except through existing contracts. More previously produced SMP became available this week, which contributed to lower prices.

Oceania Cheddar prices are lower. Many Buyers are well covered for immediate needs.

Current WMP production is focused on filling contracts. Buyer noted unexpected increased WMP availability and this factor is attributed as a reason that prices moved lower.

– 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 – Butter price in Oceania

CLAL.it – WMP price in Oceania

Milk production in New Zealand recorded -8.4% in April 2019 compared to April 2018. Fonterra’s milk collection was 9% lower than the previous year. In the first 11 months of the 2018-19 season, New Zealand increased its milk production by 2.3%.

New Zealand exports continue to grow (+ 12.9% in April 2019), but there are concerns related to the African swine fever virus (ASF) in China. Lower demand for feed in China will reduce China’s need for dairy derived animal feed.

Dairy commodities prices

Oceania Cheddar prices firmed. The sudden price increases have led some Buyers to pull back from closing deals.

The price of the SMP is stable. Very little SMP is being produced at this time of the year. Some Buyers are seeking a specific source of Oceania SMP.

Butter prices in Oceania are weaker. Many Buyers have stocks secured and churning schedules are generally lower. The price of the WMP is also decreasing: many Buyers are believed to have adequate shorter-term cover.

CLAL.it – Cheddar price in Oceania and at GDT

– 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

New Zealand milk production is falling rapidly toward the low point during June-July. Slowing economic growth in China has been said to be causing pessimistic demand factors. Lower demand from China may impact WMP and Whey sales by New Zealand and could lead to lower milk pay prices in the coming season.

Dairy commodities prices

Oceania Butter prices are slightly up, especially for short term needs. Most current production is going to fill contracts.

The average SMP price has also strengthened. SMP drying activity has slowed by this late point of the milk production season. Buyers with near term needs often fare better seeking SMP fro brokers or traders.

Oceania Cheese prices are steady to lower. Cheese manufacturing has slowed. Regular Buyers tend to be contracted and spot markets have light activity.

WMP prices are very slightly lower, due to the nature of a market fluctuation. General price stability is expected in coming weeks.

CLAL.it – Oceania milk production

– 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