Mar 2010

Butter markets are described as unchanged with fair demand along projected levels.Lower prices for anhydrous milk fat may affect butter prices in the future. Most production is committed at this stage. NZ price $5194/tonne.

Skim milk powder markets are mostly committed but pricing is steady to higher.The latest globaltrade auction price is ahead of the US price for SMP by US $545/T which is creating some interest. NZ price $4037/tonne

Whole milk powder prices are also steady to higher on the back of the last successful globaldairytrade auction. Production trends are described as steady. NZ price $4518/tonne

Cheddar The cheese pricess have trended lower with some pressure in world markets. Production is steady with limited supplies avaliable to meet extra needs.NZ price $5407/tonne.

Last month prices for dairy commodities reflect a period of stability, helped by a settled US/NZ currency. Butter, Skim and Whole milk powders are all nicely in balance with supplies matching demand. However there is some weakness in Anhydrous fat and Cheese with prices for these products drifting lower, but overall commentators are content with where the market is at. Out on the farm, the post recession adjustment stage is continuing, with reports that dairy far m sales have dropped by 78% from the peak. After the heavy cull from last year, demand is strong for cows, but values seem to be holding at realistic levels. The manufacturing cow schedule has reached a yearly high in the south, which is coinciding nicely with the start of the poor producing cow cull.

for more perspectives, see

- Exchange rates
- Commodity prices
- Farm cost indexes
- Interest rate trends
- Rural credit aggregates
- Farm sales activity

for saleyard and processor price trend graphs, see

- lamb
- beef
- deer
- velvet

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