Period: October 28 – November 8, 2019
After reaching the peak of the spring flush, farm milk production is generally stable.
Over the past two weeks, spotty showers helped to increase the quality of pastures, which in turn aided producers to have a better profit margin by easing feed costs.
The milk/cream volumes are more than adequate in most countries of the South America, excluding Brazil. The production of bottled milk, cheese, yogurt, and milk caramel is very active as year-end celebrations are approaching.
Export prices for Skim Milk Powder (SMP) shifted higher, in line with the bullish global trend of milk protein values. Due to the active production of WMP, drying schedules to make SMP are restricted in most balancing plants. SMP inventories are limited.
Whole Milk Powder (WMP) export prices adjusted higher, WMP inventories are becoming less accessible as several manufacturers are holding stocks anticipating higher prices by the end of the year.
Regional demands of WMP from the food processing industry, especially bakers, are improving ahead of the upcoming yearend holidays.