Period: September 1 – 12, 2014
- Milk production: is trending higher seasonally. A higher milk output is forecast for the new milk season.
- Weather situation: favorable for cow comfort, calving, and pasture growth.
- Milk producers: feed costs have been relatively stable.
- Milk production: trends continue to build. Early indications are nearly 10% higher than year ago levels for the first two months of the new season.
- Weather situation: favorable both on the North and the South Island.
- Milk producers: cash flows are tighter at the start of this season, reflecting milk pay prices.
BUTTER (82%): pricing trends are lower; butter and AMF output is heading up from the seasonal low point; the Russian ban on importing E.U. dairy products is affecting European markets, and additional butter is being offered onto the world market at lower prices; in contrast, the U.S. butter price is at a record high.
CHEDDAR CHEESE: prices are steady to slightly lower; production remains seasonally light, yet the price is being impacted by more cheese offerings and lower pricing trends from the E.U.
SMP: pricing is trending lower in a volatile market; production is slowly increasing seasonally; demand is light to fair for current offerings and buyers are more cautious and watching the E.U. market, where pricing is moving lower as more SMP is made to offset the effects of cheese exports not moving to Russia; returns favor production of SMP and fat products over WMP.
WMP: prices trend lower, becoming more favorable for price-sensitive countries, although the concern is when the best time to buy; WMP is available for current and nearby needs.
Dairy products prices in Oceania are put under pressure by the E.U. market, where the Russian ban, combined with greater milk production, causes an increased offer of dairy products at lower prices.
Note: · 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