World Wholesale Report

Published 11 February 19

During January, world wholesale markets firmed across all regions and all products. SMP prices gained the most ground during the month, with prices in Oceania increasing by nearly 20%. Both WMP and cheddar prices strengthened over the month. Meanwhile, while butter wholesale markets moved in an upwards direction, the extent of this movement was the most varied between the regions. The end of the peak production season in New Zealand, along with the overall slowdown in global milk production growth is likely to affected expectations around availability.

EU butter prices showed some recovery in January, although this will mostly be down to the general weakening of the euro against the US$. Both SMP and WMP prices also firmed, likely as a result of good demand combined with reduced availability.

In Oceania, prices firmed across the board, although they remain well below EU pricing. While milk deliveries continue to plentiful, it is reported that production is primarily to fulfil contracts or building stocks for later in the year. WMP prices have strengthened as buyers lock in future supplies before the seasonal decline in milk production, which has also pulled up SMP prices in the month. Cheddar markets also moved up in January due to tight supplies.

Butter pricing in the US, despite reports of ample cream supplies, continues to move up. WMP markets remained relatively balanced, which is reflected in the lack of a significant price change. The cheddar market also remained relatively flat on the month, with only minor disruptions recorded from the extreme weather.

World Wholesale Table