World Wholesale Report

Published 10 December 18

Performance was variable on the world wholesale markets in November, with trends differing across both products and regions. High production in New Zealand is keeping its fat prices low, which in turn is drawing export demand towards NZ and away from other regions, particularly Europe. SMP has had some support from export demand this month.  

EU butter prices continued to fall, while in other regions reductions were marginal; this has further reduced the EU price premium over other regions. Internally production is reported to be keeping pace with seasonal interest, but prices have dampened export interests. This dampened interest is also affecting WMP, causing prices to ease in November. In contrast, some spot market export trade has given support to SMP markets, which moved down marginally in dollar terms.

New Zealand production continues to run above last year, and hit its seasonal peak in November. High milk volumes are challenging manufacturing capacity, and excess is generally being put into bulk commodity powders. Strong supplies means prices are down for most products, particularly cheese and WMP. SMP prices reportedly had support from some pending export commitments early in the month, but have started easing more recently. Butter is only down marginally, as its competitive price versus other regions means there is strong demand helping to balance the high supply. 

The US cheese market struggled for most of November, although was reportedly picking up somewhat towards the end of the month. The strong U.S. dollar and tariff related pushback have dampened cheese export interests. Cream supplies were reportedly variable, affecting the butter and WMP markets, though overall price movements were marginal.

World Wholesale Table