Weaker dairy commodity markets [News Oceania n°14/2018]

Period: June 25 – July 6, 2018

Australia has moved to cooler weather and frost throughout the country is limiting crop growth. Looking ahead, there are concerns about feed supplies not meeting demand. Milk production is at a low level in seasonal terms, but many milk producers are optimistic overall as to the new milk production season, which started on July 1, 2018.

+6.6% milk production
May 2018

Fonterra’s New Zealand milk collection for May 2018 was +6.6% compared with May 2018, thanks to a favorable autumn weather. Milk collection for the season ended 31 May 2018 down 1% on last season.

Some operators fear that the buying interest from China may be tempered by possible depreciation of currency as an outcome which may result from the trade war.

Contracts for the coming 6 months are mostly finalized

Most regular Buyers from New Zealand have generally contracted up to 6 months ahead.

There is a further decrease in the prices of dairy commodities, although production is at a seasonally low level.

Cheddar prices are lower and the weakness was a slight surprise, with lower season milk production and also cheese production. Buyers are generally able to lock in contracts for the coming 6 months at acceptable prices to them.

WMP manufacturers are comfortable knowing that much of scheduled production for that period is mostly committed and spoken for.

Oceania SMP prices are expected to crawl along until the new production season generates some vigor.

Butter production is at seasonally low volumes reflecting lower milk production at this time of the year and the scheduled maintenance of the plants if preparation for the new production season.

CLAL.it - The Global Snapshot on the Home Page

CLAL.it – The Global Snapshot on the Home Page

– 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 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.

Posted in News Oceania EN, Oceania_