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 Index Up 1.2%
The GDT Index delivered a small gain at event #369, +1.2% as the weight of WMP trades offset red ink across other major products and most contracts. WMP continued to push higher, averaging US$3,984/t up 4.1% on the prior GDT, with most contracts higher. SMP drifted...
US Cheese Up 1% In October
US Cheese production increased 1% YOY in October according to the USDA, on flat manufacturing milk availability. American cheese output fell 0.2% YOY for the month—with a 3.1% decline for cheddar—while “other cheese” (including mozzarella) increased 1.7% YOY. Combined...
Fonterra NZ Lifts Milk Price, Confirms Guidance
Fonterra has raised the midpoint of its forecast milk price for 2024/25 to NZ$10kgMS, with a range of NZ$9.50kgMS—NZ$10.50kgMS, reflecting continued strength in the global dairy market. CEO Miles Hurrell said Chinese demand recovery and ongoing strong demand from...
Pulse Lifts WMP Price Again
The latest GDT Pulse event was a positive one for regular grade WMP lifting 2.9% to US$3,905/t from prices achieved at GDT #368 up 2.8% higher on the prior Pulse event. The nearest SGX-NZX futures contract settled at US$3,915/t prior to the event. Meanwhile, medium...
Euro Milk Slides
EU-27 milk production again declined, down 0.2% in September, the third consecutive monthly fall. Germany production was down 1.8% YOY for the month, and the Netherlands -2.6% YOY, while Poland was flat. France milk intake was up 3.2% YOY, and Irish supplies finally...
GDT Index Lifts 1.9%
GDT event #368 was a great event for butter but across other products starting demand was generally a little weaker than average with the index increasing 1.9%. SMP price averaged US$2,882/t, up 1.1% on average, but with better NZ prices and weaker EU outcomes....
NZ Milksolids Up 2.8% In October
Milksolids intake was up 2.8% YOY in October, slightly above the 5-year average, with volume +2.1% for the month. Season-to-date intake is +5% YOY, while volume is 4.2% higher. Seasonal milk production has peaked with excellent seasonal conditions in most regions...
Pulse Prices Hit Record High
Both SMP and WMP powder prices achieved this week were the highest since the inception of Pulse auctions. Regular grade WMP prices settled at US$3,800/t, up US$135/t or 3.7% compared to C2 at GDT #367 and 5.3% higher than the previous Pulse event. The nearest SGX-NZX...
US Domestic Cheese, Butter Demand Still Growing
Domestic commercial disappearance of cheese rose just 0.3% YOY in September 2024. The slight increase reflected a 1.6% YOY decline for American cheese varieties, and a 1.6% YOY increase in demand for other cheese types (including mozzarella). The fall in American...
German Milk Down In September
German milk intake fell 1.8% YOY in September, the fourth consecutive monthly decline and the largest contraction since February. Despite the decline in milk output, cheese manufacture in September was up 1.1% YOY. Among other key producing countries, Irish milk...