World Wholesale Report

Published 13 March 19

Wholesale market prices firmed almost without exception during February, however the extent of movements varied across product categories and key regions. Oceania prices gained the most momentum during the month, EU price developments were more varied, with butter prices bucking the global trend and drifting down. 

EU butter prices, while remaining stable in Euro terms, slipped in US dollar terms as the Euro increased in value. The SMP market, while firming during February, has slowed considerably compared to earlier in the season, with demand now geared towards Q2. Buying interest from export markets has also reportedly increased, supporting prices.  The WMP market was also described as relatively calm, which short-term needs driving demand.

New Zealand production remains strong relative to the previous year, while Australia continues to struggle in the drought conditions. Overall however, Oceania wholesale prices firmed across the board. Strong demand and buyers coming forwards to lock in future contracts have supported prices.

US wholesale prices have also strengthened across the board. The seasonal peak in butterfat has resulted in ample cream supplies. Butter producers are capitalising on the lower cream prices and as such butter production is reportedly strong, with stocks being built up for use later in the season.  Demand for butter is reported as seasonally stable. Meanwhile, WMP prices remain well above international prices and so limit competitiveness on export markets. The domestic market is reported to be balanced, which is helping to keep prices from dropping.  

US cheese production is reportedly strong, as producers benefit from the readily available supplies of discounted spot milk. However, demand is reportedly unstable and the strengthening US dollar is reducing competitiveness on export markets, limiting any significant upturn in prices

World Wholesale Table