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 eases
Prices were down 0.7% at GDT event #343, breaking the run of four consecutive positive events. However, there are more positives than negatives to be taken from this event. The Pulse results since the last event and futures signalled a slide in WMP prices, which fell...
Pulse drops
The gloss from the latest GDT event has worn off. GDT Pulse #36 saw prices fall for both WMP and SMP. WMP settled at US$2,930/t, down 2.8% from GDT event #342 and down 1.5% from the previous GDT Pulse event. The SGX-NZX WMP futures contract with November delivery...
US milk production down in September
US milk production fell 0.2% YOY in September according to the USDA, reflecting continuing decline in the dairy herd. In YOY terms, September average yield per cow was up 0.2% YOY while cow numbers were down 0.4%. At 9,370m, September cow numbers were down 6,000 head...
China WMP imports weaker in September
September dairy imports fell an estimated 14.3% YOY in milk solids equivalent (MSE) terms, driven by lower purchases of milk powders and dry whey. WMP imports were down 35.9% YOY to 18,981t, pulling year to date volumes down 38% or 228,855t. With high local...
NZ milk up 1.3% in September
New Zealand milk increased for the first time this season in September, increasing 1.3% YOY on a milksolids basis. At 210mkg of milksolids September production, it was still 3% lower than the 5-year average for the month to 2023. It brings season to date production...
GDT prices up for 4th consecutive event
The GDT price index posted the fourth consecutive increase at event #342, rising 4.3%. Once again, the improvement wasn’t just about China as south-east Asian and Middle Eastern buyers helped – especially for WMP. WMP prices lifted 4.2% to average US$3,059/t following...
EU milk grows marginally in August
EU27 milk production rose 0.2% YOY in August, based on complete Eurostat and AGEA milk production data. This follows a 0.6% YOY expansion in July. Among major producing countries, German milk supplies rose 0.8% YOY for the month. Dutch supplies were also up 0.3% for...
USDA lifts 2023 milk growth forecast
The USDA milk production growth forecast for 2023 was increased from the prior month due to better average yields per cow. According to the October WASDE report, milk output is expected to lift 0.5% YOY at 103.2bn kgs in 2023 after edging up 0.1% YOY in 2022. Forecast...
EU milk supply slows
German milk supplies were up 0.5% YOY in week 39 (ending 30 September 2023). UK supplies fell 2.4% YOY in that same week. French milk production was down 4.9% YOY in week 39, the 46th consecutive decline, as supplies started falling sharply since the last week of...
Fonterra revises milk price to NZ$7.25/kgMS
Fonterra New Zealand has lifted its 2023/24 forecast farmgate price to a range of NZ$6.50kgMS to NZ$8.00kgMS, with its midpoint now sitting at NZ$7.25kgMS, lifting NZ50c from the previous forecast. Fonterra CEO Miles Hurrell said the improved outlook reflects both...