SMP and Cheddar prices strengthened, driven by good demand [News Oceania n°5/2019]

Period: February 18 – March 1, 2019

In Australia, many Milk Producers continue to shrink herd size to cope with current drought and water needs. The data for the first half of the 2018-19 season recorded a production lower by 5.2% from previous year. In December 2018 there was a reduction of -6.9%.

Higher output per cow in New Zealand

New Zealand output per cow increased.

Milk production, in the period June 2018 – January 2019, recorded +4.9%. January 2019 milk production was +8.7% from January 2018.

Fonterra has increased its 2018-19 forecast Farmgate Milk Price range to 6.30-6.60 NZD/kgMS, up from 6.00-6.30. Fonterra Chairman John Monaghan said the improved milk price forecast reflects the increases in global milk prices over the last quarter.

Buyers expect weaker SMP prices and higher Butter prices

The prices of SMP and Cheddar Cheese in Oceania, helped by good demand, are on the rise. SMP Buyers expect price to weaken and hold back from finalizing contracts. Cheese Buyers have been coming forward with some determination to finalize contracts.

Current availability of Butter is pretty good, leading to a lower price. Expectations in coming months are for higher prices.

WMP price in Oceania is also moving lower. Looking ahead, prices for the next several months are not expected to trend much away from current pricing. Manufacturers are making profits at current pricing. - Cheese price in Oceania – Cheese price in Oceania - SMP price in Oceania – SMP price in Oceania

- 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

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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 News Oceania EN, Oceania_