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
USDA Lowers Milk Growth Forecast
Milk production growth forecast for 2024 was lowered from the prior month in USDA’s September WASDE report. The reduction is due to lower forecast cow inventories and a slower growth rate of milk per cow for the remainder of 2024. The slower growth in milk per cow is...
Pulse Edges Higher
Prices for both regular grade WMP and medium heat SMP lifted at the latest GDT Pulse event compared to last week’s GDT #363. Regular grade WMP rose 0.7% to US$3,430/t compared to GDT #363, but this was 3.7% lower than prices achieved at the previous Pulse event. The...
Australian Exports Continue To Grow
Australian dairy exports have increased YOY in each month since December 2023 in milk solids equivalent terms, led by cheese, milk powders and fats. July cheese exports rose 36.3% YOY – this mostly reflected stronger sales in Japan. July SMP exports were 15,209t...
GDT Index Eases
This week’s GDT event #363 produced a mixed result, with a fall of 0.4% in the price index. Weaker than average demand across most commodities brought with it the first price dip in four events. SMP was easily the strongest performer on better-than-average demand....
US Cheese Exports Up In July
US dairy shipments rose 11.5% YOY in milk solid equivalent terms during July, reflecting increases in cheese, dry whey, SMP and fats. Cheese shipments were +10.1% YOY for the month, mostly reflecting stronger shipments to Mexico. NFDM/SMP exports surged in July, up...
Pulse Prices Lift
Regular grade WMP price rose 1.7% from GDT #362 to US$3,560/t at this week’s Pulse auction, +9.2% compared to prices achieved at the previous event two weeks ago. The SGX-NZX WMP futures contract for September 2024 settled at US$3,525/t prior to the event. Medium...
German Milk Decline Continues
Weekly European milk production continues to decline in France and Germany, while UK production remains positive. In the week ending 18 August, German production declined 1.5% YOY, marking the fifth consecutive weekly decline in milk production. In France, milk output...
GDT Index Jumps
The price index rose 5.5% at GDT event #362, as demand improved. WMP was again stronger across all contracts, lifting 7% on average (the biggest gain in 3½ years) to average US$3,482/t. SMP prices partly reversed the recent losses, with prices rises across all...
NZ July Milk Output Surges
July milk production rose 9.2% YOY on a solids basis, a record high at 27.43m kg, and 6.2% ahead of the five-year rolling average for the month. Milk output lifted 8.4% YOY on a tonnage basis to 310,000t, taking season to date production 4.2% ahead of the same period...
Heat Hampers Milk Growth
Milk output in Germany, and France is down YOY as heat builds across the continent, according to weekly data. In the week ending 4 August, French milk supplies were down 1.6% YOY, after several months of weekly year-on-year growth. In Germany, milk output fell 1.1%...