Oceania Dairy Market Overview

MADISON - Jul 18/13 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:  AUSTRALIAN milk output is near the seasonal
low point.  Early estimates are for a fair to good start to the
new season.  Some stress issues are still noted from last year's
drought.  Some reports are coming in of cattle that didn't
settle because of all the stress they were under last year.
There are no estimates yet about what impact this might have on
the new production year.  New year milk prices continue to be
announced and they are giving milk producers more confidence
about the new year also.  Currency relationships are also
helping with export opportunities.
NEW ZEALAND is still experiencing issues related to the drought
at the end of the last production season.  Feed and forage
prices are very high as milk producers were forced to use winter
feed stocks much earlier than normal with no real replacements
at hand.  Moisture conditions have improved greatly, but
conditions are too cold for any pasture use at this time with
any real feed value.  Some areas actually have some surplus
moisture at this time.  Supplies of dairy products are currently
light, just before the real start of the new production season.
Negotiations are starting for next season's supplies.
gDT:  For the July 16 gDT session #96, the all contracts price
averages (US$ per MT) and percent changes from the previous
average are:  anhydrous milk fat, $4,742 +3.6%; butter, $3,693 -
0.3%; buttermilk powder, $4,826 +4.8%; cheddar cheese, $4,475
+2.1%; lactose, not traded; milk protein concentrate, not
traded; rennet casein, $9,744 -5.0%; skim milk powder, $4,566
+3.3%; and whole milk powder, $5,058 +7.7%.
1300c Butch Speth Butch.Speth@ams.usda.gov 608.278.4152
Don Nelson	donaldo.nelson@ams.usda.gov 608.278.4156

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STAT News Service