In New Zealand the market is quiet, both for the 3-week break in GDT event schedule (from July 17 to August 7) and for the low seasonal milk production.

WMP market is almost stable. With this being a 3-week gap between GDT events, there was less activity to affect prices. Once New Zealand and Australian fluid milk bottling demand is met, the highest priority is sending milk to WMP production. Milk supplies currently available for WMP are quite low. Production will be increasing week by week. Most production is already committed.

SMP prices in Oceania have slightly decreased, but are higher than EU prices. Buyers who regularly use SMP remain interested in finalizing contract, even with the potential that prices might move lower toward EU pricing.

Butter prices are slightly increasing. Most current production, which is at a very low level, is committed to contracted buyers. A decent amount of production through the new season has been contracted, however many manufacturers are comfortable keeping some production available for spot sales as the season moves ahead.

The Cheddar Cheese market has strengthened, too. Cheese has been profitable and manufacturers expect that to continue.

New Zealand exports of Cheese, SMP, WMP and Milk Cream decreased in recent months and recorded respectively: -7.2%, -3.5%, -2.7% and -12.6% in the first half of 2018 y-o-y. Butter exports continue at a sustained pace (+ 9.5%).

Australia exports, in the first 6 months of 2018, decreased for Butter, Cheese and Milk Cream, respectively: -10.5%, -0.2% (recovering in recent months) and -5.1%. The WMP export showed an increase of + 17.6% and a stability for SMP, however the months of May and June indicate a decline.

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