WMP export prices rebound in South America [News South America n°23/2018]

Period: November 26 – December 7, 2018

In Argentina, the good quality of pasture and an improvement on farm gate prices are helping to maintain milk production at high levels. A few small farmers, without capacity for economies of scale, continue to go out of business by selling their livestock to the beef industry. However, several large farms remain in force in the industry with a fair capital position.

In Uruguay, milk production has seasonally declined because of the warmer summer temperatures. Nevertheless, cream intakes are enough for most processing needs. Bottled milk production is down as most schools will be closed during the summer break.

Milk production remains heavy in Brazil as this country is at or close to its seasonal production peak. Bottled milk requests from retailers and food service are robust. Moderate to large milk volumes continue clearing into milk powder processing plants.

SMP export prices continue increasing in South America on light trading. Most processors are focusing on WMP production. Therefore, inventory levels for SMP are generally tight and highly committed to meet contractual needs.

WMP export prices rebound, following the seasonally lower milk production and the upward trends in GDT auction.

See all the information in the new webpage dedicated to the dairy market in South America on CLAL.it >

CLAL.it - South America: WMP export prices rebound

CLAL.it – South America: WMP export prices rebound

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

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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 South America, South America