The two major countries in Oceania are still seeing mixed results. Milk production in Australia, in January, decreased by 5,9% compared to the same month of last year. (data Clal)
On the other hand, favorable weather conditions in fall in New Zealand might favor a better-than-expected milk production.
As for butter, minimum price is on the rise, also thanks to the increasing anxiety about fat matter availability that this market is facing right now.
Prices are also decreasing for cheddar cheese, and buyers are satisfied with this correction, since they had previously found prices to be rising too quickly.
Substantial decreases for milk powder
For what concerns milk powders, price decrease both for whole milk powder and skimmed milk powder is substantial. Price decrease of skim milk powder reduced the difference with European countries. Some buyers had continuously opposed resistance to prices in Oceania, focusing their attention on European prices. A higher-than-expected milk production also played a significant role.
Whole milk powder prices also decreased and now are slightly lower than European’s, thus inverting the previous situation.
Weak prices during recent auctions might be ascribable to several factors such as the fact that some observatories believe excessive volumes have been auctioned for certain products, or that many prices were too high compared to market transactions or even that milk production in New Zealand might exceed expectations. In March, skimmed milk powder in Germany was 1.876 euros per ton, a 6.90% decrease compared to February, while in the United States price is 1.831 euros per ton, which is a -9.74% compared to last month of this year, and in Oceania price is 2.232 euros per ton, a 41.6% increase compared to March 2016 but also a 1.75% decrease compared to February of this year.