Period: January 7 – February 1, 2019
El Niño dampened milk production in Argentina. Floods have harshly impacted dairy farmers: several numbers of milking cows have died and sanitary measures have been lifted, while milk hauling has been a major issue.
Processors are not receiving enough milk to maximize their production. However, manufacturing of main dairy commodities such as cheese, yogurt, butter, and dairy powder are stable.
The humidity conditions continue to hamper milk yields in Uruguay, too.
On the contrary, the milk production continues to improve in Brazil. However, competition for cream among butter churners and ice cream makers is heating up, while the butterfat market continues firming.
The general consumption of dairy products in the continent is slow, while international interest, especially from Algeria, remains strong.
SMP export prices in South America rose considerably (the reduction of intervention stocks in the EU may have helped), then shifted down on slow export transactions within and outside the Mercosur bloc. SMP production is unsteady at this point.
WMP export prices increased slightly in South America. Internal demand is reported as sluggish, while offshore interest, especially from Algeria, is strong. In fact, relatively weak currencies in the Southern Cone countries are enhancing exports to Africa and Russia.