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 delivers 2% rise
Event #345 delivered an overall positive result with a 2% rise in the index. At 29,559t it was the lowest offering since July, despite a new product - mozzarella from Solarec. WMP prices rose 2.5% on average to US$3,104/t with greater interest from SE Asian buyers....
US cheese output marginally higher in October
US cheese production rose 0.8% YOY in October according to the USDA, compared to an estimated 0.3% decline in “manufacturing milk” availability. American cheese output fell 0.3% YOY for the month (with a 2.5% decline for cheddar) while “other cheese” (including...
Pulse: WMP prices
Average WMP prices lifted slightly at Pulse event #38 to US$2,979/t, edging up 0.1% from GDT #344 and 0.8% higher than Pulse event #37. Meanwhile, medium heat SMP prices fell to US$2,515/t, down 1.2% from GDT event #344 and US$70/t lower than the previous Pulse event....
German milk supplies tank
German milk supplies fell for the 5th consecutive time in week 46 (ending 18 November 2023) - down 2.2% YOY. UK supplies declined 2.9% YOY in that same week. French milk production was down 4.7% YOY in week 46, as supplies have fallen sharply since the last week of...
NZ October milk output lifts
October milk production rose 0.9% YOY on a solids basis but was down 0.3% on a volume basis, according to DCANZ. Season-to-date (June to October) production is tracking 0.6% ahead of the prior year. October marks peak production in New Zealand and while monthly output...
EU-27 SMP, cheese exports ease
Trends in EU-27 exports were mixed in September, with increases for fats, dry whey and WMP, and falls for SMP and cheese. In MSE terms, exports rose 2% YOY in September, a 7-month low. At 63,188t, SMP exports were down 0.4% YOY, despite growing shipments into SE Asia...
GDT flat but mostly bad news
GDT event #344 yielded a flat index but the weight of the small gains in WMP drove that outcome to offset weaker NZ SMP prices and an ugly result in cheddar. SMP dropped 3.7% on average to US$2,622/t but the detail within that result wasn’t great for Oceania product,...
Strongest El Niño on record forecast
There are indications the current El Niño phase could be one of the strongest on record with unprecedented global temperatures in 2024 as a result. Comparisons of the most recent 17 events indicate the 2023 edition was the sixth strongest to October based on the Niño...
USDA lowers milk growth forecast
In its November WASDE report, the USDA milk production growth forecast for 2023 was lowered from the prior month due to the revised dairy cow numbers in the USDA’s latest Milk Production report. Milk output is expected to be up 0.3% YOY at 103bn kgs in 2023 after a...
Pulse rising
WMP prices rose to US$2,955/t at this week’s GDT Pulse event #37, up 1.7% from the latest GDT event #343 and 0.9% higher than the price achieved at the previous Pulse event. The nearest SGX-NZX WMP futures contract settled at US$2,960/t, US$5/t higher than yesterday’s...