MADISON - Jul 9/15 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.
OCEANIA OVERVIEW: Australia's milk production season concluded at the end of June. Milk production for the season was above the previous year with estimates of a 2- 3% increase. Recently announced opening milk prices for the new season are at or near AUD5.60 per kg milk solids. Price step ups are expected with a forecast of AUD6.05 by season's end. Australia's dairy industry continues to see significant investments into expanding dairy operations and enhancing manufacturing capabilities and capacities to meet various dairy product demands coming from Asia. The Australian hay market has a firm undertone. Stocks are seasonally low and rainfall over much of the dairy producing region has been below average. Concerns are increasing over the possibility of lower hay yields in the upcoming harvest. Some buyers are in negotiations for additional supplies. Dairy Australia reports that May 2015 milk production in Australia was 1.1% above May 2014. The state changes from one year earlier are: New South Wales, +4.1%; Victoria, -0.3%; Queensland, -11.3%; South Australia, +1.6%; Western Australia, +15.4%; and Tasmania, +7.9%. Australia's milk production season to date (July-May) is +2.8%, compared to last season. Dairy Australia reports dairy product exports for the July-May period totaling 683.3 thousand MT, up 2.4% from the year ago period. Selected dairy product export changes compared to the same period last year are: butter, - 22.3%; butter oil, -0.1%; cheddar, -12.2%; SMP, +28.8%; WMP, -29.0% and whey products +3.1%. New Zealand's milk production is at seasonally low levels as most dairy cows are dried off and on winter pastures. Calving will begin in another week or so and milk production will start to increase. Weather forecasters are calling for cold temperatures with rain or snow in most areas of the country for the coming week. Pastures and forages are in normal to good condition for this time of year. Dairy manufacturers are attempting to reduce their remaining stocks of dairy commodities by the end of July with mixed results. Supplies are currently available for nearly all dairy commodities and will likely increase as the new season begins in August. Manufacturers are focused on locking in sales for Q3, Q4 and beyond. Demand is sluggish as many buyers have more than adequate supplies. Numerous market analysts expect the bearish market conditions to continue through 2015 and into 2016. New Zealand's May milk production, as reported by DCANZ, was 0.796 million MT, up 10.7% from May 2014 and 37.2% higher from two years ago. May milk solids reflect a 11.7% increase compared with May 2014. At the July 1 GDT event #143, average prices ranged from 10.8% lower to 1.6% 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, $2,855 +1.6%; butter, $2,694 -0.3%; buttermilk powder, $1,878 -8.1%; cheddar cheese, $3,060 -4.9%; lactose, n.a; rennet casein, $5,901 -4.1%; skim milk powder, $1,875 -5.8%; sweet whey powder, n.a.; and whole milk powder, $2,054 -10.8%. 0930C firstname.lastname@example.org 608.557.7004 USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News website: www.ams.usda.gov/dairymarketnews Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home
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