World Wholesale Report

Published 19 September 19

World wholesale markets were generally down in August, with butter prices down across the board due to reduced demand. The US saw price drops for all reported products while movements were more varied in Oceania and the EU. 

European Union

Prices were mostly down in August with limited activity due to the holiday season the main driver of price trends.

  • However, SMP prices were up in August as buyers responded to concerns over availability later in the year.

Oceania

Oceania markets were mixed in August. Milk supplies were tighter in Australia, but up on last year in New Zealand.

  • Butter prices moved down in August. Buyers were not feeling pressured to buy so early in the season. Confidence around increasing production allowed them to be price selective.
  • SMP prices went up marginally in August, possibly due to good internal demand.
  • There is reportedly very good demand for fresh WMP in Oceania. Although regular buyers know that supplies will increase there was enough near term demand to push prices up.
  • Cheddar prices were pushed slightly higher by near term demand by domestic buyers. With manufacturing levels due to increase, there was some downward price pressure later in the month.     

United States

Prices fell across the board in the US mainly on the back of low demand and plentiful stocks.

  • Butter prices fell in the US in August due to lower demand, both internally and from export markets. As more cream became available at the end of the month, butter production picked up again, adding further pressure to prices.
  • The WMP price fell early in the month on the back of plentiful stocks.
  • Cheddar prices fell from last month with internal demand said to be steady. Production was reported as stable to busy and there are stocks available. 

World Wholesale Table