Oceania Dairy Market Overview

MADISON - Apr 28/05 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  The milk production season in Oceania continues to wind
down.  Milk producers and handlers continue to report that overall milk
volumes will not attain levels of last season.  In Australia, milk handlers
feel that milk volumes will trail last season by about 1% while New Zealand
handlers maintain their projections of a 4 - 5% decline in comparison to last
year.  At this point of the season, most feel that a very late season spurt in
production will not be enough to reverse the direction of these projections.
Stocks of manufactured dairy products continue to be in very close balance and
often are reported as short of needs.  Traders and handlers state that
warehouses will be empty and inventories will be basically nonexistent by
season's end.  For some traders and handlers, they will need to reach to
outside sources to meet commitments with some indicating that they may need to
reach into the new production season to acknowledge their commitments.  Prices
are basically unchanged, although traders and handlers feel that Oceania
prices may edge slightly lower as product becomes available elsewhere in the
international market place.  Butter prices have been high for much of the
year, but traders and handlers state that prices, especially at the upper end
of the reported range, are edging lower.

0930c steve Schneeberger  (608)224-5084

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STAT News Service