CLAL.it outlines the import and export trade flows of Cheese, Butter and AMF, Milk Powders, Whey and WPC, Condensed Milk, Packed and Bulk Milk, Lactose, Casein and Caseinates by the main international players.
Milk production: continues on its seasonal decline.
Weather situation: significant rains covered much of the dairy region in Victoria, and partially alleviated the dry conditions.
Milk production: is declining at an accelerated pace. New Zealand cooperatives have revised their seasonal forecasts with seasonal production now estimated to be ranging from flat to 1.5% above last year’s production.
Weather situation: dry conditions over both islands. Conditions are more severe on the South Island where some irrigation systems are being shut down, due to low river levels.
Milk producers: rains are forecast in the coming week, but the impact of these rains on milk production will be marginal at best as farmgate prices remain low and are a disincentive for producers to extend the milk production season
BUTTER (82%): the prices range narrowed with an increase on the low end of the range, while prices declined on the upper end; offerings for export have declined; export and domestic demand are good; global prices have converged over the past number of weeks and have resulted in some Oceania prices above European prices.
CHEDDAR CHEESE: prices unchanged; production have been augmented with some milk diversions from WMP production, resulting in some marginal increases in production; domestic demand is good and exports are performing well, but are encountering increased competition from the U.S.
SMP: prices moved marginally higher on the low end of the range; production is active and supplies are readily available, but not burdensome; demand is fairly good with continued interest from those countries with weaker economies who typically purchase SMP when prices are relatively low.
WMP: prices moved higher on the low end of the range; production is decreasing as milk volumes decline, but also due to milk flows being diverted from WMP production to other commodities offering a better return; supplies are more than adequate to cover needs, but not burdensome; the dry conditions in New Zealand have sparked some increased export interest.