Milk Production and Prices: the impact of summer weather [The Austral - February 2021]

The Austral news concentrates the latest information on the dairy market in South America and Oceania.

South America: Summer weather affects milk and feed production - Max Temperature in Argentina, February 7-13 – Max Temperature in Argentina, February 7-13

Milk deliveries in Argentina, Chile and Uruguay in 2020 were significantly higher than in 2019, recording an increase of + 7.4%, + 6.1% and + 5.8%respectively.

Milk production in South America in early 2021 is decreasing seasonally, the summer weather could lead to an increase in heat stress in dairy cows and further affect the production. Some market participants report lower silage production due to drought conditions. Corn and Soybean prices are rising and soybean harvesting in Brazil is behind schedules.

The price of SMP in South America has decreased, while remaining at high levels.

The price of the WMP has risen slightly. The reduced availability of milk, coupled with the strong demand for WMP, is leading to a decrease in stocks. - Price of SMP in South America – Price of SMP in South America

Oceania: Dairy prices are rising

In Australia, Milk production in January increased by + 3.3% compared to January 2019. The overall change in the period July – January is up by + 1.0% compared to the same period of the previous year.

In February, Milk production in Oceania is decreasing due to seasonality, leading to less milk availability for processors. The demand for dairy products remains active, as a result stocks are decreasing while prices are strengthening. - Production Season Overview in the Northern and Southern hemispheres – Production Season Overview in the Northern and Southern hemispheres

In New Zealand, positive news comes from China, which has increased New Zealand imports of drinking milk.

The current market trend is confirmed by the last Global Dairy Trade event on February 16th, which recorded an average price increase of + 3.0%. Changes in various dairy products were positive, including WMP (+ 4.3%), Cheddar (+ 2.4%), Butter (+ 2.0%) and SMP (+ 0.3%). - GDT Results of February 16 – GDT Results of February 16

Source: CLAL processing on USDA, IHS and local sources.
Note: assessments about market trend are expressed inUS$

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The team is composed of young people who with the help of Computer Science study the dairy market and develop tools to provide the Operators of the dairy sector with a comprehensive real-time view of the national and international market trends.

Posted in None, Oceania_, South America