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  butter, Milk Production
The butterfat supplies are not enough to cover demand in South America

 

Milk production is steady to slightly up in South America, as temperatures remain high. Sporadic rains maintained favorable general conditions for forage and the second harvest of maize and cotton in key agricultural areas.

Fluid and UHT milk demands from educational institutions, retailers and food service are improving. Interest for cream is strong ahead of the upcoming fall holiday season. The butterfat market is still in a bullish position as supplies remain below adequate to cover all buyers and end users' needs. Cheese production in very active across the continent.

Skim milk powder (SMP) export prices adjusted lower in South America, on low export activity. SMP production is limited, but stocks remain more than enough to meet demand.

Whole milk powder (WMP) export prices shifted up. Supplies of condensed milk moving into WMP processing decreased, partially due to the opening of many public schools. As a result, WMP inventories are becoming less accessible, while the general buyers' demand remains fair to good. Exports inside and outside the Mercosur bloc are still active.

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