Here is John Hallo in our latest edition of the Inside Track, as he breaks down the latest GDT results. Whole milk powder dipped 2%, skim remains steady, and butterfat surprised with a strong lift driven by Middle Eastern demand. Cheese markets stay balanced globally, while sweet whey softens on increased EU milk flows. Protein prices, especially WPC, remain firm on tight supply.
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Hello and welcome to Maxum Foods Inside Track game two of State of Origin tonight. Queensland looking to equal the ledger over in Perth tonight. So big job ahead of them. Quite a strong NSW team on paper there. So come on Queensland, let’s see if we can have a win. Let’s have a look at the dairy industry.
Having a look at whole milk powder. So we saw a 2% dip last night. The futures market had predicted quite a bearish result. Yeah, there wasn’t a lot of confidence in demand leading into last night’s auction on whole milk powder. Some of the bigger regions who had that had been buying quite consistently were looked to be stocked up a bit. Obviously the sentiment of the new season coming on as well with good products obviously flowing through in September, October, November led to a fair bit of bearish sentiment in the market. So last night you would probably say is a positive result for the farmers and processors as demand seems to hold up against expectation.
Having a look at the skim market, not a lot to report, quite balanced in both the US and EU, a 1% decrease last night on the GDT. However, yeah, I’d say a reasonably flat short to medium term outlook for skim.
Looking at the butter fat market, an unexpected jump from butter last night against expectations again, we’re still seeing these record high numbers on butterfat, but that demand still keeps coming on a global scale. Middle East last night were big participators in the GDT on butterfat and AMF. Due to heightened tensions, it looked like there could be a degree of stockpiling into that region. If you look over the US, we see the CME pricing popping up a bit over the last couple of weeks and the EU pricing still quite firm based on some good demand. So in terms of a short to medium term outlook, we still see quite a firm butterfat market and yeah, it’ll be interesting to see if that Middle Eastern demand continues over the next few GDT’s.
Having a look at cheese, if you look over in the US, still quite a volatile market there. We have seen a bit of an uptick on CME over the last week, some good international demand for cheese, but still some good supply as well so yeah, cheese numbers or cheese volumes out of the US have remained healthy over that May, June period, but demand has been keeping up in the EU, demand still high and pricing high in the in New Zealand, Australia, it’s been a quite a balanced market over here in Australia the demand is still quite good for on the food service and retail side of things and supply still abundant. So yeah, things balanced quite, well across the whole, the whole globe at the moment.
Having a look at sweet whey and proteins. So on the sweet whey side of things, we have seen some increased milk volume out of Ireland and Poland in particular, which is putting some pressure on that sweet whey global market. In terms of proteins, yeah, WPI still in good demand and prices high, but in particular WPC, there doesn’t seem to be as much on the market that US price in particular has risen quite considerably just in the last month due to lack of supply. Thanks very much for listening to today’s Inside Track. I hope you have a great fortnight and go Queensland!
