Period: April 30 – May 11, 2018
Demand for hay in Northern Australia is higher, due to seasonally cooler temperatures. New season hay is being snapped up from milk producers from New South Wales and Victoria, who are competing with exporters for that hay. That has led to some price firming.
The dairy season in New Zealand will end on May 31st. Milk production in the first 10 months was -0.3% than in the previous season. Recent better than expected milk production will boost the seasonal total, due to improvement in pasture conditions. Nevertheless, seasonal production will be lower than last season.
Butter prices in Oceania are steady to higher, but still lower than pricing in Western Europe. Australia has higher milk volumes than last year, which is helping move cream to churns. Domestic butter demand is good. In New Zealand butter supplies have tightened reflecting lower milk volumes and lower fat components.
SMP prices also strengthened. Manufacturers have sufficient inventories to meet the demand in a period of low seasonal production.
WMP prices are slightly lower. At this time of the year WMP is the priority milk destination and some manufacturers are working to keep pace with contract obligations.
Cheddar brings strong returns