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 down again
The price index fell 2.8% at this week’s GDT auction #352 on a reduced offering. Weakness in SMP markets was reflected in the 4.6% decline in SMP price to average US$2,517/t, a 6-month low. Chinese buyers took their lowest tonnage since May last year. WMP prices lost...
US Feb milk production down 1.3%
US milk production fell 1.3% YOY in February according to the USDA, mostly reflecting a continuing decline in the dairy herd. In YOY terms, February average yield per cow was down 0.4% YOY while cow numbers were down 0.9%. At 9.330m, February cow numbers were up...
Fonterra NZ narrows milk price range, lifts profits
Fonterra New Zealand has released interim results for FY2024 reporting net profit after tax jumped 23% to NZ$674m, driven by increased EBIT (+11%) and a dip in financing costs, down 43%. Fonterra reported a drop in earnings of NZ$383m for its Ingredients category...
WMP falls on Pulse
Regular grade WMP fell to US$3,155/t at this week’s GDT Pulse event, down 2% compared to GDT auction #351 and 2.3% behind the previous Pulse result. The March 2024 SGX-NZX WMP futures contract settled at US$3,180/t– just US$25/t higher than the achieved C2 regular WMP...
Petition mounted to maintain NZ export ban
In response to the new government’s pledge to repeal a ban on live exports, a parliamentary petition started by former National Animal Welfare Advisory Committee chairperson Dr John Hellstrom has garnered more than 17,000 signatories since it was started on the 23rd...
GDT index falls
The overall decline in prices at event #351 sent the GDT index down 2.3%. The decline was widely expected with weakness in SMP in the past couple of weeks as higher milk output in the EU spring looks more likely. The weaker demand outlook for WMP post-Chinese New...
US cheese output down in January
Cheese production fell 1.2% YOY in January according to the USDA, compared to an estimated 1.3% decline in the availability of “manufacturing milk.” American cheese output declined 5.5% YOY for in January (with a 7.9% decline for cheddar) while “other cheese”...
Pulse drops
Prices for WMP and SMP slid compared to GDT event #350 and the previous event, at this week’s Pulse auction. Regular WMP C2 prices fell US$100/t to US$3,230/t from GDT #350, down US$105/t from the Pulse event #44. Medium heat SMP fell US$75/t from GDT #350 to...
NZ: Milk down 0.6% in January
New Zealand milk production fell 0.6% YOY in January on a solids basis, according to DCANZ. Despite the fall, season-to-date solids production is now tracking 0.8% ahead of prior year, as soil moisture levels have dropped in some dairying regions. On a volume...
GDT edges higher
GDT event #350 recorded a 0.5% increase in the overall price index on the lowest volume offered since June last year. WMP prices were expected to weaken with the slippage in futures prices in the past 2 weeks, and they obliged, down US$74/t to US$3,388/t. This was...