butter,
WMP
Weaker prices for Butter and WMP
After recent very hot and dry conditions, rains arrived in Australia, not so pervasive as to significantly interfere with hay cutting. Spring has arrived.
New Zealand dairy producers and processors continue to feel that there will be a decent increase in milk production this season. Underwhelming price resultsfor some products at recent GDT events are probably linked to the quick seasonal start for increased milk production, with a higher production (+8%) in June-July 2018 y-o-y.
Butter prices in Oceania are weaker. Butter production is increasing seasonally and much current production is committed. Once milk volumes reach peak levels, more butter may become available for spor market buyers.
Also WMP prices in Oceania are lower. Oceania WMP is typically a mainstay of profits for regional dairy processing. There are regular ongoing customers and contracts to be satisfied.
The SMP market is slightly increasing. Oceania SMP Production is seasonally active, but return tend to favor WMP and this is reflected in milk allocations to drying plants. SMP volumes into the near future are typically committed under contracts. Little Oceania SMP is easily found on spot markets.
Average Cheddar Cheese prices in Oceania are higher. Oceania cheese production is seasonally light, but building. Milk at this time of the season generally flows to other dairy products as a higher priority.