Period: March 2 – 13, 2020
The climate in Argentina, Brazil and Uruguay has been mainly dry and warm during the last weeks, promoting the growth of second-crop corn in southern Brazil and improved the development of summer grains in Argentina.
Argentina+5.5% milk production January 2020 y-o-y
The good fodder quality and favourable weather led to an improvement in pasture quality and in farm milk yields in South America. Milk production is abundant and, apart from Brazil,it is able to meet manufacturing needs within the industry.
The demand of Fluid Milk and UHT Milk is improving for schools, grocery stores and restaurants. Cream demand is still in a firm position as supplies remain below adequate to meet all the needs of buyers and end users. However, cream volumes are anticipated to increase throughout the fall season.
Due to a greater availability of milk, SMP production is higher, highlighting an increase of stocks.
SMP and WMP prices are decreasing, following the international bearish trend.
Milk powder demand is limited due to the outbreak of Coronavirus, especially in Brazil. This is leading to most Argentinian and Uruguayan manufacturers to lower their prices to be more attractive to buyers.