Lower demand from China may impact New Zealand export [News Oceania n°10/2019]

Period: April 29 – May 10, 2019

Australia-6.7% milk production
Jul18-Mar19 yoy

Milk production in Australia decreased by 10.6% in March 2019 y-o-y. On a cumulative basis, production recorded -6.7% in the first nine months of 2018-19 season. Some analysts are not terribly optimistic that producer margins will improve much in coming months. If so, that will be a negative factor impacting Australian milk production in the early stages of the next milk production season.

New Zealand milk production is falling rapidly toward the low point during June-July. Slowing economic growth in China has been said to be causing pessimistic demand factors. Lower demand from China may impact WMP and Whey sales by New Zealand and could lead to lower milk pay prices in the coming season.

Dairy commodities prices

Oceania Butter prices are slightly up, especially for short term needs. Most current production is going to fill contracts.

The average SMP price has also strengthened. SMP drying activity has slowed by this late point of the milk production season. Buyers with near term needs often fare better seeking SMP fro brokers or traders.

Oceania Cheese prices are steady to lower. Cheese manufacturing has slowed. Regular Buyers tend to be contracted and spot markets have light activity.

WMP prices are very slightly lower, due to the nature of a market fluctuation. General price stability is expected in coming weeks.

CLAL.it - Oceania milk production

CLAL.it – Oceania milk production

– 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.

Posted in News Oceania EN, Oceania_