Period: February 18 – March 1, 2019
The climate has been favorable in the main dairy basins of Argentina, Paraguay, Uruguay and Brazil. Nevertheless, some meteorologists predict that El Niño could hit hard again in the coming months, causing floods and droughts across all the continent.
The upcoming corn harvest is expected to be more voluminous and of better quality compared to the previous year. A greater availability of better quality corn could support dairy farmers’ profit margins.
Milk intakes in the Region are more than enough to cover all processing needs.
In Brazil, the economy seems to be stabilizing, while the consumer confidence level is improving with a higher demand for dairy products.
Skim milk powder (SMP) export prices adjusted up. Condensed skim milk drying schedules are limited in most balancing plants, then SMP stocks are less than enough to cover all processing needs. Brazil is actively producing SMP for domestic consumption, but the current demand is beyond the immediate supply, so SMP export from Uruguay and Argentina to Brazil are strong.
Export prices for whole milk powder (WMP) in South America increased. Buyers’ interests are growing. Production of WMP has been reduced, since milk requests from bottlers continue improving and condensed milk intakes moving into dryers are becoming less accessible. International trading remains active as some manufacturers continue to take advantage of relatively weak regional currencies.