Report 33 – Released on August 15, 2019

AUSTRALIA:

In Northern Australia there is a limited amount of hay available from the region, even new season hay. This has resulted in hay from Southern Australia moving into the region. New planting has lagged so far. Many producers are concerned that obtaining good quality hay will be difficult as the season progresses.

Hay is also limited in Southern Australia. Not much carryover hay is left as the new season begins. Still uncertain is whether baled high moisture hay will be okay to feed or whether heat made safety uncertain. Crops are germinating but reports are that some unevenness exists as to progress.

Western Australia also reports tight supplies. Export demand is driving prices higher as that competes with domestic demand for hay.

NEW ZEALAND:

Even with relatively low early milk season volumes, dairy manufacturing is moving ahead with gusto, better than had been expected. More new season manufactured dairy products are reaching markets earlier than some buyers had expected. Other dairy observers note that during late summer it is not so uncommon for the rise in production to catch buyers off guard as to the magnitude and pace of increase. While low on the seasonal arc, production is moving up pretty quickly.

Overall the reality of the increase caught markets a bit off guard and weighed on current pricing. With China being a good customer for dairy products from New Zealand, there are now concerns voiced about what will materialize this season. Buying from China contributes to dairy product prices and hence, the milk price. Currency concerns in China are concerns in New Zealand. More significantly, the apparent slowing of the economy in China is a worrisome harbinger in New Zealand.

If exports to China decrease below expectations, that could adversely impact the farmgate milk price for the season and ripple throughout New Zealand. This is not yet projected to happen, but the possibility is on the łclosely watched´ list.

Information for the period August 5 - 16, 2019, issued biweekly

     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@usda.gov

     Additional Dairy Market News Information:
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