Milk volumes across the globe are starting to ease but positive growth across the main milk producing countries is expected to continue for the rest of 2015.
There was little to change to the AgriHQ prices this week. Most exporters are waiting for the August 4 GlobalDairyTrade to provide the market with further direction.
Fonterra has now finalised its offer volumes and opening prices for the next GDT event. There was a small reduction in the volume of whole milk powder (WMP) to be offered, relative to the previous forecast. However, the 28, 050t of WMP on offer is still 75% higher than the previous auction.
Fonterra has maintained its practice of setting the opening prices approximately 15% lower than the previous settlement price.
This means regular grade NZ WMP for October delivery will initially be offered at US$1450/t.
A reduction has been made in the volume of WMP that Fonterra plans to sell on GDT in the next 12 months. The forecast volume is now 449,580t, a drop of 46,200t.
European prices are down for the main dairy commodities. WMP prices dropped sharply in Germany but still remain well above Oceania prices levels. Prices for all other products including butter have moved lower in the past week.
Prices generally softened in the US markets in the past week. Cheese, nonfat dry milk and whey have all traded lower on the CME in the past week.
- Susan Kilsby is senior dairy analyst for AgriHQ. She is the editor of weekly report Global Dairy Snapshot and Monthly Dairy report. Prices for Oceanic-sourced dairy products are collected by AgriHQ and published in the Global Dairy Snapshot. The Monthly Dairy report provides an in-depth account on the key factors influencing the dairy industry, both internationally and within New Zealand.
