Strong Butter, SMP and Cheese demand [News Oceania n°8/2019]

Period: April 1 – 12, 2019

Australia-6.5% milk production
Jun 18 – Feb 19 yoy

February 2019 Australia milk production is 12.6% lower than February 2018. Seasonal milk production July 2018 through February 2019 is -6.5% than last year.

Australia is already in the first month of autumn and many dairy producers are focused on assuring that adequate hay and grain are secured for winter use. Hay stocks are tight in Northern Australia and demand is still ahead of supply. This necessitates hauling hay from other areas, especially Southern Australia. As the new planting season approaches, recent rain improving soil moisture has been welcome as far as hopes that the next season will produce more hay and grain and help dairy production.

Recent rain on the North Island, in New Zealand, greened some pastures.  Seasonal milk production July 2018 through February 2019 is +4.4% from last year. Most of the milk for the current season has been produced. Whatever the weather impacts from April to June will not greatly impact the season’s final result.

Dairy commodities prices

Buyer decide to close sales rather than waiting

Oceania Butter, SMP and Cheddar prices firmed, due to the strong export demand and a seasonal production moving lower. SMP and Cheddar availability for “spot” sales is tighter and that is leading buyers with unmet needs to close deals.

WMP prices in Oceania are slightly lower to steady, reflecting a limited buying interest, because many users contracted previously to be assured of supplies. WMP prices are expected to be mostly steady in the coming weeks. - Oceania and GDT Butter prices – Oceania and GDT Butter prices

- 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_