Argentinean milk production rose 2% YOY to 837m litres in April – this followed a 2.5% YOY growth in March. With slowing growth in milk supplies, output of WMP declined since the December quarter last year with a nearly 9,000t contraction in the past six months. Cheese production rose 8.1% YOY in March following a weak February quarter as manufacturers focused on SMP/butter despite relatively small product volumes overall.

WMP stocks were reported at 21,542t at the end of March, a decline from February and an 8-month low. According to the USDA, South America a more expensive WMP origin relative to Oceania (US$4,500/t v US$3,833/t) but still significantly cheaper than Europe (US$5,613/t) in April.