Oceania: dairy commodity prices are trending lower [News Oceania n°22/2015]

Period: November 2 – 13, 2015

AUSTRALIA

• Milk production: the overall peak was below projections and slightly earlier than expected. The overall yearly milk production projections will probably be revised.
• Weather situation: substantial rainfall across much of Australia.
• Milk Producers: hope that the moisture can replenish soil conditions. The expectations are that hay and grain supplies will be tighter and at higher prices. Milk prices are generally stable.

NEW ZEALAND

• Milk production: as anticipated. The peak was reached in mid-October. Milk production projections are still expected to be lower by about 5%.
• Milk producers: there are concerns about pasture conditions and lack of pasture growth as the season progresses.

MILK PRODUCTION

• Australia *: +2.97% (Jul-Sep 15 vs. Jul-Sep 14)
• New Zealand *: -4.02% (Jun-Sep 15 vs. Jun-Sep 14)

BUTTER (82%): prices are sharply lower. Demand is weaker. Export movements are steady to lower. Production is seasonally active to build stocks for later commitments, looking forward to a possible rise in prices.

CHEDDAR CHEESE: prices decreased at the upper end of the range. Production is mostly steady. Competition on the world market continues. Buyer interest is uneven, with offerings of similar varieties from the E.U. Whey prices are low and not helping the overall cheese returns.

SMP: prices are trending lower. Production is steady, while demand has slowed. Competition from EU and US. Some manufacturers want to hold SMP stocks and not sell at current pricing levels.

WMP: prices are trending lower. Slower, uneven global demand. Production rates are trending lower but remain seasonally active.

Oceania dairy commodity prices are trending lower across categories. Market tone is weaker. There are more pricing pressures as demand has slowed and product offerings are increasing.

CLAL.it – Today’s GlobalDairyTrade Auction results (Nov 17, 2015)

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