SMP prices increase [News South America n°2/2020]

Period: January 6 – 17, 2020

After several weeks of dryness, moderate to heavy rains returned to the central/southern regions of South America. In general, these showers were beneficial to several corn and soybean plantation areas, increasing soil moisture. However, this wet climate hindered milk yields due to sanitary issues in a few farms.

Milk and cream outputs are seasonally lower due to higher summer temperatures. Demands for milk and cream are very strong, but the volumes are less than sufficient to satisfy most of these needs, with the exception of bottled milk and cheese.

In South America SMP prices inched up, following global trends. In some instances, these higher prices have been slowing the SMP trading activity.

Most balancing plants are focusing on WMP production instead of SMP. In general, demand for SMP is strong, but supplies are limited, thus the market remains bullish.

Unlike the SMP market, WMP prices are steady in South America, with no significant changes on trading. Although farm milk intakes are seasonally lower, milk volumes are relatively available for WMP processing. In this way, WMP manufacturing is active throughout the region, while inventories are in balance with most needs.

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Source: USDA summarized by the CLAL Team
Note: assessments about market trend are expressed in US$
More informations about dairy market in Argentina, Brazil and Chile are available on

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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 South America, South America