Oceania Dairy Market Overview

MADISON - Jan 7/10 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:

        The Oceania milk production season continues to wind down.
Milk handlers state that projected peak levels were not attained,
thus they hope that the decline will be gradual.  Milk production
projections were adjusted from previous levels in New Zealand
recently and are now pegged at 1.5% ahead of last season. In
Australia, milk production trends are not as positive.  For the
first 4 months of the season (July - October) cumulative milk
output is running 5% behind last season and many milk handlers do
not anticipate that this figure will improve much, if at all, for
November.  The yearend holiday period has been quiet for most
traders and handlers.  Manufacturing schedules were maintained
during this time period and stocks continue to clear Oceania
ports.  In most instances, traders report that prices are
unchanged to lower.  Weakening trends in some international
markets could stimulate further adjustments within Oceania
sources.  Traders and handlers state that stocks are in close
balance to short with some Oceania suppliers looking to outside
sources for supplemental stocks.  At the January 5th global/Dairy
Trading event, the average whole milk powder price declined for
the first time since July.  The average price was $3,309 per MT,
7.05% lower than last month.  The near term delivery (March)
averaged $3,282 (-6.83%), April - June averaged $3,255 (-8.05%),
and July - September deliveries averaged $3,523 (-5.2%).  The
average anhydrous milk fat (AMF) price of $4,539 per MT was 4.37%
higher than last month.  Near term anhydrous deliveries (March)
averaged $4,517 (+2.53%), April-June deliveries averaged $4,493
(+3.81%), and July - September deliveries averaged $4,735
(+9.23%).


0930c steve Schneeberger  (608)250-3204

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STAT News Service