Period: February 19 – March 2, 2018
Higher temperatures and lack of water are anticipated during the rest of the summer and autumn season in South America. Dairy producers in Argentina (tamberos) are very concerned about their profitability due to a potential increase in the price of grains, which represents around 50% of the diet of their dairy herds. According to some industry contacts, farm gate prices will remain fairly steady at least through the end of the summer season.
In Argentina and Uruguay milk production is not sufficient to cover all manufacturing needs. Some processors are prioritizing the production of cheese and yogurt, instead of milk powders.
Some dairy farmers have not yet received government subsidies allocated to help with flood damage from previous years. Hence, rural road infrastructure continues to deteriorate in the major dairy basins.
Butter manufacturing is lower, driven by shorter cream supplies.
In Brazil, the shortage of milk is helping to sustain higher farm gate prices.
SMP export prices adjusted down. Brazil produces enough SMP, and imports very light volumes from Uruguay and Argentina. In South America SMP stocks are less than sufficient to cover all processing needs.
WMP pricing range narrowed in South America, since exports from Argentina to Algeria increased the minimum values and some imports from Brazil pulled down the top. The WMP market is stable, while inventories are becoming less available in some processing plants across the region.
See all the information in the new webpage dedicated to the dairy market in South America on CLAL.it >
Corn prices in Argentina
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 CLAL.it
... share
The CLAL.it 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.
