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
Milk production down 0.5% in October
Milk production declined 0.5% in October according to the USDA. The contraction was the first since May 2020 and followed a revised flat result for September. The overall decline in October was a result of a 0.3% YOY fall in average yields per cow and a 0.1% drop in...
China’s October WMP imports decline
Chinese WMP imports fell 10.5% YOY for the month to 33,064t and are up 38% for the year to date, reflecting relatively high stocks and smaller participation on GDT as NZ-origin product average CIF shipped prices were flat at US$4,307/t. The October contraction...
EU milk growth to remain near flat
A new USDA GAIN report projects EU-27 milk production to increase by 0.2% YOY in both 2021 and 2022. The small projected gains in supplies are due to improved average yields as cow numbers are expected to continue to decline – down 1% this year with an additional fall...
EU-27 exports mixed in September
EU-27 dairy exports were mixed in September across product categories we track. At 61,619t, SMP exports were flat YOY, with growth into Northern Africa but less product into China & HK. The current and projected EU-27 SMP stock situation is tight, particularly...
GDT gains disappoint
The strong build-up in spot and futures prices in the EU and NZ didn’t translate to strong demand in this event, with subdued gains in powder prices delivering an index gain of just 1.9%. SMP jumped just 1.4% on average to US$3,676/t across all products with stronger...
US exports still on pace for a record year
US exporters shipped 17.5% of national milk solids produced during September – a 7-month low but still 1.9% higher YOY. The slowdown in September exports relative to prior months reflected port congestion, with multi-month lows for milk powders, cheese, and butterfat...
No end to EU price hikes?
Official EU prices have lifted for 13 consecutive weeks with butter prices in all three major markets remaining above €5,000/t. In Germany butter rose €50/t €5,350/t, while Dutch butter rose €120/t to €5,340/t and French butter was on par with the week prior, selling...
GDT surges on bullish sentiment
The continuing bullish settings in the world market that have changed little in recent weeks converted into the biggest lift in the GDT index of 4.3% since March this year. SMP jumped 6.6% on average to US$3,627/t across all products with consistent changes across...
NIWA moves to La Niña alert
A progression toward La Niña conditions occurred in the equatorial Pacific during October and NIWA has moved to La Niña Alert. Temperatures are very likely to be above average across Aotearoa New Zealand (65% chance) with a period of particularly warm conditions from...
New Zealand September milk drops
DCANZ reported New Zealand milk production dropped 4.0% YOY in milksolids terms in September and was down 4.4% in volume terms. Cold, wet weather, and low light levels slowed pasture growth. NZX dairy analyst Stu Davison said that both energy levels of pasture and dry...