World Wholesale Report

Published 11 July 18

Global prices for powders and butter generally rose in June, with the exception of a marginal decrease in the Oceania butter price. Cheddar cheese prices were down in both the US and Oceania. Despite ample stocks of SMP in intervention stores in the EU, prices improved in all three regions in June. New Zealand’s seasonal trough may be supporting SMP markets, particularly for fresh product.

The strength in EU markets is still led by the weather, with the cold and wet making way for the hot and dry, and June prices were driven by increases from May into the start of the month. Growth in butter prices has slowed considerably. EU powder markets have been reported to be calm, with the increases recorded here likely to be in part influenced by the strengthening of the dollar against the euro through May.

US butter production is steady, with good stocks, but there are signs of demand starting to soften. As with Europe, the growth in butter price is slowing.

Oceania milk production is at seasonally low volumes, which should lend support to prices. Despite this, butter prices are down marginally, though this could be the effect of thin market trade not allowing for a robust average price.

There is uncertainty in the US Cheese market, which has put downward pressure on prices. Oceania would usually expect price increases at this time but good supplies in other regions have given buyers a negotiating position that has led to a small drop in prices.

 

World Wholesale Table