Period: September 2 – 13, 2019
Milk production continues to improve as South America transitions from winter to spring season, and Butterfat volumes are seasonally improving, too.
Demands within the dairy industry and food processing sector is strong. Cheese production, especially mozzarella, is very active with strong interest from restaurants and pizzerias.
SMP market has been unstable, reflected on mixed export prices. SMP production is moving higher along with seasonal milk output, while the trading activity has been light to moderate, as the demand for SMP inside and outside the Mercosur bloc ranges from sluggish to fair.
As milk production increases, more Whole Milk Powder (WMP) is being produced. Export demand is reported to be not enough to keep pace with production, therefore WMP inventories are slowly growing. Export prices decreased.