MADISON - Jul 3/13 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.
OCEANIA OVERVIEW: AUSTRALIAN milk production trends are flat at the start (July 1) of the new production season. Milk price announcements for the 2013/14 season continue to be announced. Farmgate prices are higher with additional step up noted because of shifts in currency values and as processors match others' pricing. There is increasing farm level confidence for the new season. According to Dairy Australia, May milk production in Australia was 7.6% lower than May 2012. Seasonal milk output from July - May is 2.7% lower (unadjusted for leap day in 2012) than during the same period a year earlier. Season through May, unadjusted regional changes are: New South Wales, -1.2%; Victoria, -2.5%; Queensland -5.6%; South Australia -5.3%; Western Australia -0.7%; and Tasmania -3.7%. In May 2013, the Victoria region produced 62.1% of the total milk. New South Wales was a distant second, producing 12.7%. NEW ZEALAND milk production season is at the low point. The season is projected to start well, yet track only slightly above levels of the strong start to the last season. Cows are in good condition. Conditions have improved for the pastures. Plentiful moisture since April has helped pasture stature and regrowth. Some areas have gone from drought to high moisture conditions. The extent is too early to have any impact on milk. Overall, demand for dairy products is light to fair. Some buyers are seeking supplies to fill in nearby needs. Most product movements are for orders on the books. Market price discovery is limited as offerings and buyer interest are both light. Supplies are very light, reflective of the low point of the season. gDT: For the July 2 gDT session #95, the all contracts price averages (US$ per MT) and percent changes from the previous average are: anhydrous milk fat, $4,645 +1.2%; butter, $3,707 - 5.7%; buttermilk powder, $4,610 +6.0%; cheddar cheese, $4,395 - 3.7%; lactose, not traded; milk protein concentrate, not traded; rennet casein, $10,259 +7.9%; skim milk powder, $4,441 +3.1%; and whole milk powder, $4,757 +0.1%. 1300c Butch Speth Butch.Speth@ams.usda.gov 608.278.4152
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STAT News Service
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