Oceania Dairy Market Overview
MADISON - Jan 21/16 - SNS -- The USDA published its latest review of dairy market conditions in Australia and New Zealand today.
OCEANIA OVERVIEW: Hay has benefitted from rain which has mitigated the dry conditions in Northern Australia. This has resulted in increased paddock feed. The demand for purchased feed has lessened as a result. Baling is difficult in coastal areas as a result of continuing storms. Less hay is being shipped as a consequence of the rain's impact on growth. Southern Australia continues to have strong demand for hay following poor yields and an early end of the season, leaving supplies low. Hugh demand is resulting in hay movements over some distances to secure enough feed to see producers through the summer. Hay exports remain significant in Western Australia. Trading is slow and the impact of recent fires in hay country remains to be determined. At the January 19 GDT event #156, average prices ranged from 7.8% lower to 2.7% higher from the prior event across categories. The change in all GDT price index from the previous event is -1.4%, the second decline during 2016. The all contracts price averages (US$ per MT) and percent changes from the previous average are: anhydrous milk fat, $3,724 +2.4%; butter, $3,162 -5.9%; buttermilk powder, $1,620 +2.7%; cheddar cheese, $2,867 -3.4%; lactose, $579 -1.7%; rennet casein, $4,405 -7.8%; skim milk powder, $1,835 -3.2%; sweet whey powder, n.a.; and whole milk powder, $2,188 - 0.5%. The GDT results were preceded by lower futures prices. Some analysts say that the GDT results are in line with market expectations, specifically weak global demand for dairy products with increased production. November milk production as reported by DCANZ was 2.980 million MT, down from 3.045 million MT during November 2014 but higher than 2.961 million MT two years ago. 0930C Eric.Graf@ams.usda.gov 608.557.7005 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
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