- 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.
Eurex (EUR/mt)
- The European butter price dropped last week, and skim milk powder traded higher.
Chicago Board of Trade (USD)
- US cheese and milk (Grade 3) dropped last week, but skim milk powder rose again.
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.
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.
Other Opinions You May Be Interested In…
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- New Zealand Dairy Producers Strive to Fill European Supply Gap
