April 11, 2024
Welcome to Freshagenda’s Global Dairy Weekly – a newsletter with insights derived from our Global Dairy Directions platform. Our newsletter covers major events in domestic and global dairy markets. Feel free to forward it to your colleagues.
First Take:
US dairy industry observers may take heart from the improved export performance for February. The 14.6% increase in milk solid equivalent terms in February comes after 12 consecutive months of year-on-year contraction in shipments and was helped by an extra day in that month. The US has been the cheapest origin cheese for sometime so its perhaps unsurprising shipments are increasing in early 2024. Given waning domestic demand, export expansion will be necessary as new cheese capacity comes on stream later this year.
Meanwhile, the half-year results for global chocolate maker Barry Callebaut make for some interesting reading. Global sales volumes have been surprisingly resilient given significant cocoa price rises, with the business able to capture the move to private label. It does point to a flat outlook as cocoa prices continue to rise, worth watching for a key part of the SMP market.
This week’s highlights include:
- US Exports Rebound in February
- Brazil WMP Imports Decline
- US Cheese Output Eases in February
- European Dairy Prices Rise
- NZ Methane Review Underway
Futures and options on futures trading involve significant risk and are not suitable for every investor. Information contained herein is strictly the opinion of its author and not necessarily of Ever.Ag and is intended for informational purposes. Information is obtained from sources believed reliable but is in no way guaranteed. Opinions, market data and recommendations are subject to change at any time. Past results are not indicative of future results. This report is in the nature of a solicitation. Reproduction or redistribution is prohibited by law.
