Period: November 27 – December 8, 2017
July-October milk production in Australia is up 2.72% over July-October last year. In Victoria, which accounts for around two thirds of national production, there was an increase by 3.6%. Three regions more focused on supplying the Australian domestic milk markets continue to lag: New South Wales, Queensland and Western Australia.
In New Zealand it is early summer and early concerns about pasture dryness are voiced. Threats of drought and the impact on milk production contributed to last week’s strengthening prices for some GDT commodities, such as WMP and SMP.
New Zealand’s Fonterra reduced its farmgate milk price forecast for the 2017-18 season by 0.35 NZD to 6.40 NZD/kgMS. Converted into milk, the price is 27.82 €/100 kg of milk 4.0% fat and 3.4% protein mass/mass (ref. Germany, current change of reference: 1 NZD = 0.5875 €).
In Oceania, prices for Butter, SMP, WMP and Cheddar follow the trend of the GDT auction results.
Butter prices dipped. Many large buyers were pretty well stocked through 2017. Australian seasonal Butter production July-September is 34% below the same period last year.
Also Oceania Cheddar prices are weaker. Cheese is typically the Australian manufactured dairy product with the greatest milk equivalent use, nearly one third of milk production during the 2015-16 season. Oceania Cheddar pricing faces tough competition from Cheese prices in the EU and US.
WMP Buyers are taking steps to be assured of having supplies for February-May 2018, worried by the recent early signs of dryness in New Zealand.
SMP and WMP prices in Oceania are slightly up. Seasonal SMP production in Australia July-September is 22.9% below last year, while is 24.4% higher for WMP. WMP buyers are generally covered in the short term and are taking steps to be assured of having supplies for February-May. They are cautious due to the recent early signs of dryness in New Zealand.
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CLAL.it – Oceania: WMP prices
- 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
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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.
