Period: January 20 – 31, 2020
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.
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.
Coronavirus could impact on chinese consumption
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.
- 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