Period: April 30 – May 11, 2018
Wetness persisted in Argentina, slowing summer crop harvests but improving pasture conditions throughout the main dairy states of the country.
Farm milk production in Argentina is improving seasonally: at this point, milk and cream supplies are adequate for cheese, butter, yogurt and milk caramel manufacturing.
Favorable climate conditions in Uruguay added comfort to the dairy herd. The Minister of Agriculture of the country reported the creation of a guarantee fund for dairy producer debts for an amount of $36 million. It is expected that this new fund will alleviate the high level of debt of some dairy producers throughout the country. Listen to the Minister himself (in Spanish):
Milk production in Brazil has slightly improved, but milk and cream availability is still less than sufficient to satisfy all manufacturing needs. Dairy imports mainly from Uruguay and Argentina are very active.
SMP export prices increased in South America, following GDT auction, and remain far above the rest of the world: this is largely attributed to the Mercosur export tariff of 28%.
WMP export prices adjusted lower, reflecting some sign of weakness as WMP supply is above the immediate interest from buyers. WMP production is now more active.