Oceania Dairy Market Overview

MADISON - Sep 25/14 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
Australian milk production is off to a good start this season
and on the rise.  Early season-to-date figures show production
up as much as 9% for some cooperatives, compared to last year.
Rainfall is below normal and has affected crop yields.
Irrigation has begun in some areas, which is ahead of the
typical seasonal schedule.  Temperatures are warming up nicely
in major dairy producing areas and prompting increased forage
growth.  Dairy commodity export demand is active, but increased
global supplies are offering buyers the opportunity to shop
around for the best price.  Trade activity with China is
increasing, but without major spikes in purchasing.  New Zealand
milk production is in full swing with production levels quickly
rising.  Preliminary data shows August milk production near 5%
above year ago levels.  Some cold, wet weather has hit the North
Island with minimal impact to dairy production.  Recent rains
have prompted good pasture growth on both islands.  There have
been some manufacturing shifts from skim milk powder to whole
milk powder production, due to the decline in the price
differential between the two commodities and also due to the
increasing supplies of skim milk powder in other global markets.
The results of a large Algerian tender saw significant volumes
of whole milk powder awarded to New Zealand manufacturers.
Supplies of most dairy commodities are readily available and
being sourced from current production.  Demand for most dairy
products is viewed as good.  At the September 16 GDT event #124,
average prices ranged from 6.9% lower to 1.3% higher from the
prior event across categories. The all contracts price averages
(US$ per MT) and percent changes from the previous average are:
anhydrous milk fat, $3,264 -2.2%; butter, $2,698 -2.5%;
buttermilk powder, $3,140 -6.9%; cheddar cheese, $3,077 -6.5%;
lactose, n.a.; rennet casein, $8,343 +1.3%; skim milk powder,
$2,619 +0.9%; sweet whey powder, $1,295 n.a.; and whole milk
powder, $2,692 +0.6%.
0930C rick.whipp@ams.usda.gov 608.278.4151
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal:
www.marketnews.usda.gov/portal/da

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STAT News Service