Beef prices climb as supply contracts in key markets
With production volumes contracting in most major beef-producing regions, global cattle prices have continued to rise across recent months.
Rabobank says NZ dairy prices are “hanging in there” following last week’s Global Dairy trade auction.
This saw the overall price index fall by only 0.8% compared with the auction held a fortnight earlier. Total volumes sold were 20% lower, associated to seasonal declines and within market expectations.
The NZ dairy sector’s all-important whole milk powder price (WMP) increased by 0.1% to US$2,745/MT compared with the previous GDT. The WMP price was much stronger than the 4% fall indicated by the futures market.
However, prices for butter and AMF took a hit – down 5.8% and 2.4%, respectively.
US-based RaboResearch dairy analyst Tom Bailey says volumes in the last week’s GDT were largely unchanged for both WMP and SMP.
However, there was an increase in butter and AMF volumes, 42% and 3.5% respectively – which explains their price falls.
Bailey adds that North Asian (primarily Chinese) demand was back, with total product volumes down by 45% compared to the previous GDT. He says increased buying from Southeast Asian and Middle Eastern countries buoyed last week’s auction, with purchased quantities up 46% and 37% respectively, against the prior auction.
However, Bailey has sounded a note of caution about the premiums Oceania product is currently maintaining over the international market.
“Oceania’s premiums are somewhat alarming,” he says. “Last week’s prices settled at an average premium of 36% compared to international markets. “Specifically, Oceania butter, SMP, WMP, and Cheddar prices are at 56%, 27%, 13%, and 46% respectively, above the combined average EU and US prices.”
Bailey says these premiums are well above their 2019 comparisons of -3%, 12%, -5%, and 7% respectively. However, it is not unusual for Oceania product to earn price premiums compared to global competitors.
Bailey says there is also a seasonal component and historically Oceania premiums show a tendency to peak February through April, as the region’s milk volumes slow and its products become scarcer.
Like many manufacturers around the world, European agricultural machinery and tractor manufacturers are currently operating in a difficult market environment. But they are heading to the world’s largest agricultural machinery event in Hanover next month with a degree of cautious optimism.
Established in 2021, the John Deere Technician of the Year Awards champion the important contribution parts and service technicians make to the Australian and New Zealand agriculture, construction and forestry industries.
Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.
New Zealand is closer to eradicating bovine TB than ever before, but possums remain a threat, says Beef + Lamb New Zealand.
Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.
The ACT Party says media reports that global dairy giant Nestle has withdrawn from the Dairy Methane Action Alliance shows why New Zealand needs to rethink its approach to climate.
OPINION: Dairy industry players are also falling by the wayside as the economic downturn bites around the country.
OPINION: Methane Science Accord, a farmer-led organisation advocating for zero tax on ruminant methane, will be quietly celebrating its first…