- China’s dairy supply is tight and European prices are rallying.
- With this, we’re seeing some Asian buyers turn to Oceania for their supply.
- New Zealand’s dairy prices have rallied in response.
The New Zealand Futures Exchange (USD/mt)
- New Zealand’s dairy products rallied again last week, especially anhydrous milk fat.
- This is because Africa and the Middle East are looking beyond China and South-East Asia for the first time in a while.
- We hold a positive view for New Zealand, as Chinese supply is tight and European prices are high.
![undefined](https://czapprodfdcs6we7s4p4o.blob.core.windows.net:443/images/article-content-images/9eaff9bb-4373-4ab0-b46b-b3e40bdb666c.png)
Eurex (EUR/mt)
- The European butter price dropped last week, and skim milk powder traded higher.
![undefined](https://czapprodfdcs6we7s4p4o.blob.core.windows.net:443/images/article-content-images/8d2c4b6f-a1b7-47fd-b59c-6c9cf70100f9.png)
Chicago Board of Trade (USD)
- US cheese and milk (Grade 3) dropped last week, but skim milk powder rose again.
![undefined](https://czapprodfdcs6we7s4p4o.blob.core.windows.net:443/images/article-content-images/4488dab4-06f9-4bac-9c84-e0e14e2e4f43.png)
Dairy Prices in the Major Markets (USD/mt)
- European dairy prices have been rallying for two months and are now struggling to compete with other markets.
- This is especially the case for butter, with buyers now turning to Oceania.
- We’re entering into the peak consumption window in Western Europe, so prices could hold strong right through to the end of the year.
![undefined](https://czapprodfdcs6we7s4p4o.blob.core.windows.net:443/images/article-content-images/116a2181-363d-469f-b09f-78b975bdb547.png)
China’s Cheaper Domestic Prices Weakens Import Appetite
- China’s domestic whole and skim milk powder prices have dipped below the import cost
- With this, Chinese buyers displayed little interest in importing during last week’s GDT auction.
![undefined](https://czapprodfdcs6we7s4p4o.blob.core.windows.net:443/images/article-content-images/f8a3e9af-a4bb-4573-9386-9e4625d4e36b.png)
![undefined](https://czapprodfdcs6we7s4p4o.blob.core.windows.net:443/images/article-content-images/63e4d52e-3736-45d2-b5e5-13b522262ef0.png)
Other Opinions You May Be Interested In…
- NEW! Dairy Prices Soar on Energy Shortage
- Czapp Explains: Skimmed Milk Powder vs. Whole Milk Powder
- New Zealand Dairy Producers Strive to Fill European Supply Gap
![undefined](https://czapprodfdcs6we7s4p4o.blob.core.windows.net:443/images/article-content-images/286b2f9b-be13-4e1b-bda9-0fbbfb2797fd.png)