Period: July 23 – August 3, 2018
Australia
+3.1% milk production
Jul 2017 – Jun 2018
In New Zealand the market is quiet, both for the 3-week break in GDT event schedule (from July 17 to August 7) and for the low seasonal milk production.
WMP market is almost stable. With this being a 3-week gap between GDT events, there was less activity to affect prices. Once New Zealand and Australian fluid milk bottling demand is met, the highest priority is sending milk to WMP production. Milk supplies currently available for WMP are quite low. Production will be increasing week by week. Most production is already committed.
SMP prices in Oceania have slightly decreased, but are higher than EU prices. Buyers who regularly use SMP remain interested in finalizing contract, even with the potential that prices might move lower toward EU pricing.
Many Butter manufacturers prefer to keep some production available for spot sales
The Cheddar Cheese market has strengthened, too. Cheese has been profitable and manufacturers expect that to continue.
New Zealand exports of Cheese, SMP, WMP and Milk Cream decreased in recent months and recorded respectively: -7.2%, -3.5%, -2.7% and -12.6% in the first half of 2018 y-o-y. Butter exports continue at a sustained pace (+ 9.5%).
Australia exports, in the first 6 months of 2018, decreased for Butter, Cheese and Milk Cream, respectively: -10.5%, -0.2% (recovering in recent months) and -5.1%. The WMP export showed an increase of + 17.6% and a stability for SMP, however the months of May and June indicate a decline.
– 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