Period: July 9 – 20, 2018
Despite the increase in milk production, boosted by favorable weather, dairy farmers in South America are challenged by currency devaluations and increased operating costs.
In Argentina milk production is climbing (+7.84% Jan-May 2018 year-over-year), but farmers are still trying to recover from the devaluation of the Argentine peso. In addition, higher grains and operating costs are squeezing margins. Domestic cheese sales and export volumes increased, but it will take time for the farm situation to improve.
Good weather and pasture quality is helping milk production in Uruguay to grow.
In the region’s largest consumer market, Brazil, milk production is also increasing. Prices are falling for consumer goods. Subsequently, spot milk prices have realized a pronounced drop in the last few weeks.
SMP export prices in South America remained unchanged. As milk deliveries climb, SMP processing has become more active and stocks are increasing. Demand for SMP is tepid.
WMP export prices remained unchanged, too. As milk production rises, WMP processing has been very active, while demand is stable.
See all the information in the new webpage dedicated to the dairy market in South America on CLAL.it >
Corn prices increased in Argentina this year
Soybean prices increased as well in Argentina in 2018
Source: USDA summarized by the CLAL Team
Note: assessments about market trend are expressed in US$
More informations about dairy market in Argentina, Brazil and Chile are available on CLAL.it
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The CLAL.it team is composed of young people who with the help of Computer Science study the dairy market and develop tools to provide the Operators of the dairy sector with a comprehensive real-time view of the national and international market trends.
