production,
milk
Oceania is near peak seasonal production
In Australia, spring is moving closer. There was little rain in most of the country during the last two weeks. Hay from the new season is reaching the market and this is welcome to many dairy producers who have low carryover stocks. Feed grain prices remain at high levels in much of Australia.
Milk production in Australia, in the first three months of the 2018−19 season, recorded -3.3% compared to July-September 2017. The content of fat and protein was also lower.
New Zealand milk production has remained higher longer than expected. This has led to scheduling more production of higher volume dairy powders to absorb the milk volumes, to the disadvantage of higher profit products such as infant formula.
Butter prices strengthened, driven by strong near term demand. Butter production is strong and manufacturers are working hard to keep Butter demand supplies while adding to stocks that will be needed as seasonal milk production slowly delicines.
SMP prices are stronger, especially for near-term sales. Production is high to stay even with milk intakes.
Cheddar prices in Oceania moved lower. There seems to be plenty of Cheddar available. Cheddar production is very active.
WMP prices are weaker. Buyers are less motivated in locking in prices early in 2019. WMP production is very strong.