Period: April 20 – May 1 2015
AUSTRALIA
- Milk production: is showing some increases, due to favorable weather conditions. March 2015 milk production was 4.9% above March 2014.
- Weather situation: conditions are favorable for milk production.
NEW ZEALAND
- Milk production: continues to decline, but the recent rains have prompted some producers to extend the milking season a bit longer.
- Weather situation: beneficial rains over the past few weeks. Soil moisture levels have improved, but remain below the historical average in some areas, especially on the South Island.
MILK PRODUCTION
- New Zealand *: +2.18% (Jun 14-Mar 15 vs. Jun 13-Mar 14)
- Australia *: +2.94% (Jul 14-Mar 15 vs. Jul 13-Mar 14)
BUTTER (82%): prices moved lower on the upper end of the range; manufacturers want to reduce uncommitted supplies prior to the end of the fiscal year (June 30 for Australia and July 31 for New Zealand); uncommitted supplies are more readily available in New Zealand.
CHEDDAR CHEESE: prices unchanged; production in Australia has declined as some plants are beginning to cycle through planned closures for maintenance projects: as a result, supplies available for the spot market are limited; demand is fairly steady.
SMP: prices moved lower; buyer interest has increased marginally; some manufacturers with reduced uncommitted supplies are opting to hold those inventories for later in the year when prices may be possibly higher.
WMP: prices moved lower as uncommitted supplies continue to weigh on the market; demand is significantly below year ago levels, primarily due to China’s reduction in purchases compared to last year; the market has a weak undertone.
Demand for Australian dairy commodities has declined as many buyers have recently made purchases and have their near term needs covered. There is a building consensus among dairy analysts that dairy commodity markets are at or near the low point, but it will take a considerable amount of time for prices to substantially recover.
Major dairy associations in New Zealand, Australia and the United States are calling for a timely and successful conclusion to the TPP (Trans-Pacific Partnership) trade talks. It is hoped the negotiations will result in reduced trade restrictions and enhanced nutritional security.
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
More informations about milk production in New Zealand and Australia are available on CLAL.it
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