International milk prices & markets – mixed bag for May 2014
International milk prices for May 2014 are showing mixed signals, with some markets posting gains, and some weakening further.
Nevertheless, indications are that the markets have indeed softened, and it is hard to see Irish milk prices being maintained at the current historic highs for the foreseeable future.
Arla Foods look set to hold their price for June, but indications are it may drop further as the year progresses.
Fonterra announced its final forecast cash payout price for the 2013/2014 season which ended on May 31 was NZ$8.40/kg of milk solids, down from the previous forecast of NZ$8.65.
Of greater interest, is that Fonterra announced their opening forecast price for the 2014/2015 at $7.00/kg/milk solids (Euro 31.6¢/L of milk 3.9% fat/3.35% protein). Even though this prices is back considerably from the end of season 2013/2014 price, it is worth noting that the initial forecast price at the start of the 2013/2014 was also NZ$7.00 kg/milk solids. However, the market is currently not expecting 2014 2015 season prices to reached the record highs of the previous season
** Indicates Fonterra’s Opening Price for 2014/2015, rather than their closing 2013/2014 price
FrieslandCampina’s farmgate milk price drops for the fourth month in a row. The price drop is now equivalent to about 1c/L.
GDT Whole Milk Powder (WMP) – WMP prices from the 20th May 2014 auction are quoted at US$3,877 tonne. Prices from the corresponding auction in April were US$3,990 per tonne, a decline of 2.8%.
USA Class III Milk Price when calculated for an Irish milk constituent of 3.9% fat, USA ‘Announced’ Class Milk Prices for April show a 4.3% increase over March prices in euro value.
The global IFCN milk price indicator for April indicates a significant 9.5% price drop over the March figure. April’s price was $49.50 per 100kg of milk, while March was listed at $54.70 (Energy Corrected Milk: 4% fat, 3.3% protein).
Russian prices showing gains, but this is largely due to improvements in currency exchange rates.
The China Raw Milk Price for May is not available presently.
Further notes on International Milk Prices: https://www.agriland.ie/international-milk-prices-notes/