World Wholesale Report

Published 10 April 19

World wholesale markets were mixed during March. The seasonal decline in milk production in Oceania led to tightening supplies, which supported prices. Conversely, milk production in the EU and US is beginning to increase seasonally.

In the EU, milk production is starting its seasonal uplift.  A weaker euro against the dollar has amplified falling prices when expressed in US dollar terms. Butter prices moved down, with buyers stocked for the short-term. Production remains strong ahead of the seasonal uplift in demand. Warmer weather meant the first asparagus came onto the market; a major driver of butter demand in some regions. The arrival of the asparagus may have softened the fall in the butter price. SMP markets were relatively steady. Few buyers were pressed to close deals with short-term needs covered. Production was mainly for filling contracts which limited spot market activity. Export interest remains active as prices are currently below Oceania. WMP markets were mixed as conditions between producing regions varies. With prices in line with Oceania’s, increased export demand supported prices. Internal demand was reportedly steady, though stocks were tighter.

In Oceania, butter, Cheddar and WMP markets firmed. Milk production is slowing down seasonally, however extreme weather disrupted some milk hauling routes, adding to the shrinking supplies. With product production also slowing down, buying interest picked up, supporting prices.Conversely SMP markets fell, with stock levels reportedly high. Competition for export markets also put downwards pressure on prices.

Across the US, cheese production was reportedly strong as milk production is rising seasonally. Though there are concerns over depleting stock levels, demand is steady, particularly from the processing sector. Butter markets also firmed. Production remains active, with stocks being built up ahead of the seasonal lift in demand. Retail and food service demand was reportedly strong, supporting prices. WMP markets were reportedly stable. With prices above other international markets, export interest was scarce. Production and domestic demand increased ahead of the baking season.

World Wholesale Table