Period: October 28 – November 25, 2019
Australia-4.5% milk production September y-o-y
In Australia, milk production of September 2019 has registered a decrease of 4.5% compared to September 2018. July-September 2019 milk production is -6% compared to the same period last year.
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.
Many Cheddar Buyers have good cover into early 2020
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.
- 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