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
Pulse Prices Mixed
Regular grade WMP settled at US$3,715/t, down 2.6% against GDT 399 but higher than the price achieved at the latest Pulse event. Instant WMP fell 2.0% on GDT#399 to settle at US$3,830/t. Medium heat NZ SMP edged up 0.3% on GDT #399 at US$3,330/t, while Arla’s MH SMP...
Australian Exports Decline in January
Total January exports declined 16.2% YOY in milk solids equivalent (MSE) terms. Cheese exports fell 27.5% YOY to 10,143t (lowest since September 2023), led by weaker shipments to Japan. SMP exports rose 14.7% YOY for the month, with most of the increase in shipments...
Powders Drive GDT Gains
There were big moves in the GDT Index as geopolitical uncertainty looms. The increase was ahead of expectations, reflecting positive market sentiment but also demand for near-term product needs. Powder propelled higher as SMP rose 9.1% on strong relative demand as...
Argentina WMP Production Surges
Milk recovery in Argentina boosted WMP output since June 2025, with a 21.2% growth over the last six months (or 22,000t). January WMP stocks were 11% higher in YOY terms and 5% above the five-year average. Cheese production rose 5.4% YOY in January but declined 6.4%...
US January Milk Hike
US January milk output rose 3.2% YOY, shy of expectations. Cow numbers were up 2% YOY with 1.2% YOY growth in average yield per cow, which was an eight-month low. The milking herd is still large – standing around +190,000 head above year-ago levels with 13,000 cows...
NZ January Solids Production Sets Record
Dairy farmers across New Zealand benefitted from a wet month as January milk production rose. Milk solids output increased 2.9% YOY, setting a new January solids record and bringing seasonal solids output +3.1% ahead of the prior season. Volume rose 2.0% YOY, while...
SMP Price Lifts, Fats Mixed on Pulse
This week’s Pulse event was mixed for powders and fats. Regular WMP C2 prices settled at US$3,655/t, unchanged from GDT #398, while Fonterra’s medium heat SMP C2 prices rose 2.3% on GDT #398 to US$3,050/t. The nearest futures prices for both powders settled higher...
January US Inflation Comes in Lower Than Expected
Headline inflation in the US was reported at +2.4% YOY in January, an eight-month low, with core inflation (which excludes volatile energy and food prices) at +2.5% YOY, the lowest since March 2021. The headline increase was lower than pre-report market expectations,...
EU Cheese Exports Reach an All-Time High
December exports rose 22.1% YOY in milk solids equivalent (MSE) terms, with stronger shipments across all key commodities except lactose. MSE exports increased 12.5% in the last quarter, led by SMP and cheese. Cheese exports were at an all-time high of 134,835t and...
December Cheese Output Up 6.7%
US cheese production increased 6.7% YOY in December, according to USDA, on an estimated 5.5% rise in manufacturing milk availability. American cheese output rose 6.8% YOY for the month with a 9% increase for cheddar, while “other cheese” varieties (including...