Period: January 7 – 18, 2019
Central and southeast Australia continue to suffer under intense temperatures, which in some areas reach 116°F (≃ 47°C). Cows and pastures are suffering and the disappointingly low milk production is crimping manufacturers’ schedules.
+4.4% milk production
Jun-Dec 2018 y-o-y
Butter prices in Oceania are stronger. Lower milk and cream supplies will be available in coming weeks and months. Early year demand is active. Butter Exports from New Zealand increased (+ 7.8% in the period January-November 2018), in particular to China (+ 28%) and to Australia (+ 26.6%).
Prices for SMP in Oceania firmed. SMP production has begun a seasonally normal decline and this is a contributing factor to price firming. Another factor is the milk draw from WMP manufacturers to maintain as much WMP production as they can. Buyers are also apprehensive about possible SMP supply tightness overall, also due to the recent rapid drawdown of EU intervention SMP. Exports declined both for Australia (-1.2% in the period January-November 2018) and for New Zealand (-11.3%).
Some milk that could be accommodated by Cheddar plans, may transition toward Milk Powders, which are considered more profitable right now
High WMP demand from China, Algeria and Thailand
- 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