Global Market Updates
Milk from Australian dairy farms are made into products that are sold locally and in countries around the world. Understanding what is happening in all these markets will provide an insight to important trends that strongly influence Southern Region farmgate milk prices. Keep up to date with the latest global dairy market developments
US March Milk Down 1%
US milk production fell 1% YOY in March according to the USDA, reflecting a continuing decline in the dairy herd. Average yield per cow was flat YOY while cow numbers were down 1% YOY in March. At 9.335m, March cow numbers were down 7,000 head on the prior month and...
NZ March Milk Output Falls
Milk production was down 1.2% YOY on a solids basis in March, taking season-to-date production 1.1% ahead of the prior year. Milk intake fell 3.5% YOY on a volume basis with seasonal output trailing 0.2% behind the prior year comparable. The drop was just short of...
GDT Stalls
The price index edged 0.1% higher at event #354 on a reduced offering for now but news of higher deliveries in coming months. SMP was flat on average, down 0.4% to US$2,541/t as later contract periods flattened, offsetting a 2.6% increase in Fonterra MH C2 price....
NZ: Fonterra Plant Closures
Fonterra will close a number of ageing plants at two Waikato sites in an effort to optimize operations. Fonterra’s Waitoa PDC, a coal centre and two dryers in Te Rapa are no longer efficient to operate and will close later this year. The Te Rapa driers will close...
Prices Lift on Pulse
Regular grade WMP prices rose at this week’s GDT Pulse event with prices up 0.6% against GDT event #353 and 5.1% ahead of the previous Pulse event at US$3,215/t. Instant WMP settled at US$3,310/t, taking the weighted average WMP price to US$3,280/t. Futures settled...
Australian Exports Continue to Grow
Australian exports were up 5% for the season to February in milk solid equivalent terms. The increase was led by increased shipments of cheese, milk powders, butter and dry whey. Exports were ahead in the month of February across most dairy products except milk...
GDT index rises
GDT event #353 recovered part of the ground lost at the previous event, with the overall price index up 2.8%. Demand was above average across commodities, most impressively in fats. Chinese involvement was better than the previous event, but still on the low side of...
US milk prices up in February
The all-milk price rose in February according to USDA’s latest Ag Prices report. The all-milk price of US$0.47/l was up 2.5% from the prior month but still 4.6% lower YOY. Average MPP farmgate margins rose by 11% between January and February to $10.5/cwt, reflecting a...
Prices down at Pulse auction
The latest Pulse event saw both WMP and SMP prices ease. Regular WMP sold for US$3,060/t lost 1.1% from the GDT event #352 last week and was down 3% from the previous Pulse auction. Instant WMP settled at US$3,155/t. Meanwhile, medium heat SMP prices settled at...
EU milk down 0.9% YOY in January
EU27 -milk production declined 0.9% YOY in January, based on complete Eurostat and AGEA data. This follows a 0.7% YOY fall in December. January production declined 2% YOY in Germany, France was 0.3% lower. Irish production continues to be affected by wet weather, with...