Period: October 31 – November 11, 2016
Argentina and Uruguay
- Milk production: is seasonally steady to lower, after reaching the peak of the spring flush.
- Milk producers: pasture and forage conditions are improving in both countries.
- Overall market situation: milk intakes are in balance with manufacturing needs. Pulls from cheese manufacturers are strong. UHT milk processing is active. Bottled milk demands from retailers and several restaurants are up.
- Milk production: is steady to higher.
- Weather situation: thunderstorms are present in the Southeast region, where the main dairy states are located. The current severe drought has harmed the quality of grass and forage, but with these rains dairy operators are hopeful that pasture quality will improve in the near term.
- Milk producers: some are adding more cows to the milking parlor.
- Overall market situation: the food processing industry continues growing, demanding more milk, especially milk powders. Overall, milk volumes are below the current processing needs. Sales activity of spot milk is steady.
- Milk production: is steady, but below levels from the previous year.
- Weather situation: although rainy conditions are present in the main dairy regions of Los Ríos and Los Lagos, farm milk output has been marginally affected.
- Milk producers: milk prices paid to milk producers in September were $202 Chilean pesos (CLP) per liter, down 4.1% from last month, but 1.8% above the previous year.
- Overall market situation: milk supplies are sufficient to meet processing needs. Milk demand from yogurt manufacturers is strong. Condensed milk processing is active. 18% of milk produced in September was destined into bottling processing.
- Argentina: -11.41% (Jan-Sep 2016 year-over-year)
- Uruguay: -12.67% (Jan-Sep 2016 y-o-y)
- Brazil: -6.37% (Jan-Jun 2016 y-o-y)
- Chile: -1.65% (Jan-Sep 2016 y-o-y)
WMP prices for 26% butterfat: 2,650 – 3,350 U.S. $/MT, F.O.B. port.
Prices are mixed on a wider range. The bottom of the range shifted down reflecting export transactions outside the Mercosur bloc. The top of the range is reflecting sales trades within Mercosur, mainly exports from Argentina and Uruguay to Brazil. Interest from the food processing industry, especially in Brazil, is strong. Brazil WMP imports from January to October 2016 totaled 106,984 MT, up 113% from the same period in 2015. From this total, imports from Uruguay and Argentina represented 68% and 27%, respectively.