Oceania Dairy Market Overview

MADISON - Nov 12/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.

OCEANIA OVERVIEW:
Australian milk production is holding mostly steady at volumes just
off the seasonal peak levels likely seen just a few weeks ago. The
overall peak was below projections and slightly earlier than expected.
The hope is that output can sustain at current volumes for a longer
period before declining. These circumstances will likely have a
negative impact on the overall yearly milk production projections.
Substantial rainfall has been received across much of Australia. The
hope is that the moisture can replenish soil conditions and help crops
and hay. The expectations are that hay and grain supplies will be
tighter and at higher prices. Some grain crops are being cut for hay
needs, but the feed values tend to be lower than anticipated. High
water rates are also impacting cropping. Milk prices are generally
stable. Dairy Australia reports dairy product exports for the
period of July to September 2015 totaled 171.9 thousand MT, up
6.7% from a year ago. Selected dairy product export changes
compared to the same period last year are: butter, -27.5%;
butter oil, -33.5%; cheddar, +8.8%; SMP, +35.9%; WMP, -3.1% and
whey products -39.8%. The value of exports increased 6.6% over
the same period in 2014.
The New Zealand milk production season is moving on as anticipated.
The peak was reached in mid-October. Weather conditions are generally
as expected. There are concerns about pasture conditions and lack of
pasture growth as the season progresses. Milk production projections
are still expected to be lower by 5% or so, mirroring current season
to date estimates. Dairy commodity prices are trending lower across
categories. There are more pricing pressures as demand has slowed and
product offerings are increasing.
GDT SUMMARY: At the November 3 GDT event #151, average prices
ranged from 11.2% to 4.6% lower 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, $3,647 -5.7%; butter, $2,574 -5.6%; buttermilk powder,
$1,844 -9.4%; cheddar cheese, $2,987 -4.6%; lactose, n.a.;
rennet casein, $5,469 -11.2%; skim milk powder, $2,018 -8.0%;
and whole milk powder, $2,453 -8.0%.
0930C Butch.Speth@ams.usda.gov  608.557.7001
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal:
http://www.marketnews.usda.gov/mnp/da-home

---

STAT News Service