Period: October 29 – November 9, 2018
In Australia, spring is moving closer. There was little rain in most of the country during the last two weeks. Hay from the new season is reaching the market and this is welcome to many dairy producers who have low carryover stocks. Feed grain prices remain at high levels in much of Australia.
-3.3% milk production
Jul-Sep 2018 y-o-y
New Zealand milk production has remained higher longer than expected. This has led to scheduling more production of higher volume dairy powders to absorb the milk volumes, to the disadvantage of higher profit products such as infant formula.
Strong near term demand for Butter and SMP
SMP prices are stronger, especially for near-term sales. Production is high to stay even with milk intakes.
Cheddar prices in Oceania moved lower. There seems to be plenty of Cheddar available. Cheddar production is very active.
WMP prices are weaker. Buyers are less motivated in locking in prices early in 2019. WMP production is very strong.
– 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