Period: September 16 – 27, 2019
South America transitions from winter to spring season and milk production is generally improving. Temperatures are becoming more comfortable to dairy cows, boosting their milk yields. According to several dairy farm operators, farm prices are not enough to cover all operating costs.
Milk supply is adequate to cover most manufacturing needs. However, the domestic consumption of dairy products, particularly in Argentina, continues to decline over time and, as a business alternative, some processors are looking to sell abroad, outside the Mercosur bloc.
Plants are prioritizing WMP over SMP
WMP production is active, prompted by higher farm milk outputs. Export prices adjusted higher, in line with recent upward pricing trends in the global market. The market undertone is firmer as WMP supply is below the immediate need from buyers.