World wholesale prices

Updated 12 November 2019

This price series looks at the average wholesale prices of certain dairy products from the EU, Oceania and the US. It aims to provide an overview of global wholesale price movements which can affect prices closer to home.

Overview

World wholesale markets showed strength in powder prices in October on the back of good demand, while butter and cheese showed a more mixed picture.

EU

  • EU wholesale market movements were generally positive during October, helped by tight supplies and seasonally low milk production. A stronger euro also pushed up US denominated prices.
  • Butter prices were mixed across the member states, leading to marginal movements overall.
  • WMP firmed slightly on a quiet but steady market, while SMP prices have increased on the back of good demand.
  • Demand for cheese was good both within the EU and for export. Markets stayed firm but did not move substantially.

 

Oceania

  • Butter prices moved only marginally in October. Availability is good as the Oceania season reached peak production. Domestic demand is good, particularly in Australia, but high supply ultimately weighed on prices.
  • Price movements were also marginal for WMP. Production kept pace with strong export demand.
  • The SMP price rose nearly 4% on the month. There was strong buying interest, but some drying plants were favouring producing WMP over SMP.
  • Cheddar prices were lower in October, with many buyers stocked for current needs.

 

US

  • Despite holiday demand starting to pick up, butter prices were down on the month. Good cream supplies and high stock levels kept prices on their downwards trend.
  • Demand for WMP was good early in October, particularly from the bakery and confectionary sectors as the holidays approach. As the month continued spot trade became lighter, with the focus mainly on contracts. Overall the increased demand lifted the price.
  • Cheese prices continued on the upwards trend that’s been present most of the year. Although stocks are at good levels, high prices may be making buyers resistant to finalise deals.

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World wholesale prices