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
GDT prices improved 1%
The 292nd event index posted a 1% gain with the powders providing the gains despite the continued subdued involvement of Chinese buyers. WMP gave the best result a little better than futures market indicators with rising fat and protein values in the lead-up. WMP...
US milk production up 1.1% in August
Milk production expanded 1.1% in September according to the USDA. The increase was the smallest in 14 months and followed a 2% YOY growth in July. The milking herd declined again, down 19,000 head compared to the prior month to 9.480m. While down on the multi-decade...
EU July milk down 0.5%
EU-27 supplies fell 0.5% YOY in July, based on our analysis of data reported by Eurostat and AGEA. The overall YOY decline was driven by a1.2% contraction in Germany, while France was down 1.9%. In the Netherlands milk output contracted by 3.1% while Poland was down...
UK cheese trade continued weaker in July
UK cheese imports were down 26% YOY in July, at 33,172t. For the 12 months to year to July, cheese imports were down 18% compared to the prior year. Front-loading of shipments in Q4-2020 ahead of Brexit implementation affected early 2021 trade, but monthly totals are...
USDA milk growth forecast reduced
In its September WASDE report, the USDA milk production forecast for 2021 was reduced from the prior month, reflecting a smaller dairy herd and lower average yields per cow. Milk output is still expected to increase 2.1% YOY to 103.3bn kgs in 2021 – that would follow...
NZ milk price forecasts rise
The NZX milk price forecast for the 2021/22 season has jumped 39c to NZ$8.04kgMS following last week’s lift in prices at the GDT event, with WMP recording the largest price rise since March. Currently, the NZX milk price range is NZ$7.89 – NZ$8.42kgMS with the bottom...
US cheese, whey exports strong in July
Despite port congestion slowing SMP/NFDM shipments, the US exported 17.7% of its July milk production. In MSE terms, July dairy exports were up 7% YOY - the sixth consecutive monthly expansion, driven by stronger sales into China and Mexico and despite weaker...
GDT prices improve across the board
GDT event #291 posted a 4% increase in the price index, on a larger overall offering of 25,093t compared to #290. Powders provided the strongest percentage gains despite the lower involvement of Chinese buyers. Demand was better across the board and the event achieved...
Fonterra holds mid-point in milk price forecast
In its most recent DIRA announcement, Fonterra maintained its 2021/22 forecast farmgate milk price at a mid-point of NZ$8.00kgMS. Prior to the season commencing, Fonterra forecast a farmgate milk price range of NZ$7.25 kgMS – NZ$8.75 kgMS, however, no upper and lower...
NIWA’s NZ weather outlook
The latest climate outlook from weather forecaster NIWA is for a warmer spring with less rainfall for some parts of New Zealand. Warmer than average temperatures are expected through spring with unseasonably warm conditions at times in the east of both the North and...