Rain has mitigated dry conditions in Northern Australia [News Oceania n°2/2016]

Period: January 11 – 22, 2016

AUSTRALIA

• Milk production: in November was 3.4% lower than in November 2014.
• Weather situation: rain has mitigated the dry conditions in Northern Australia.
• Milk Producers: hay has benefitted from rain in Northern Australia. This has resulted in increased paddock feed, and the demand for purchased feed has lessened as a result. Southern Australia continues to have strong demand for hay following poor yields and an early end of the season. Supplies are low, and high demand is resulting in hay movements over some distances to secure enough feed through the summer.

NEW ZEALAND

• Weather situation: no information for the relevant period.

MILK PRODUCTION

• Australia *: +0.70% (Jul-Nov 15 vs. Jul-Nov 14)
• New Zealand *: -3.08% (Jun-Nov 15 vs. Jun-Nov 14)

BUTTER (82%): prices declined at the top of the price range. This is historically a time when butter demand is weaker.

CHEDDAR CHEESE: prices are lower. Pricing is reflective of concerns over growing global milk supplies.

SMP: prices weakened at the top of the price range while the bottom remained steady, in part reflecting the influence of intervention in the EU. There is growing concern with the increasing global milk supplies even with some hot weather impact in Oceania mitigating volumes there.

WMP: prices are unchanged. Manufacturing of WMP is somewhat tied to contracts more than seeking spot sales. Manufacturers are comfortable with current inventories.

CLAL.it – Latest GDT auction results

Note: · 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

More informations about milk production in New Zealand and Australia are available on CLAL.it