We are observing the higher price volatility that we been able to note in recent times. Climatic factors such as rainfall or drought added to the global economic situation are some of the ingredients that we are considering at the last prices of Fonterra.
Lecheria Latina took part in the Annual Meeting of ADPI, in the city of Chicago, where we met all the American Dairy, traders and brokers most important of the industry. All these sectors carefully observe the latest results emerged from the last tend of Fonterra. For most of them, there are doubts that these prices reflect the reality of the dairy market.
How is the demand
If we look at the big consumers and importers of dairy, we see that the demand has not been able to transfer with the same speed rising prices in the final product. For this reason, in recent years, demand has been very selective (always talking about markets where the tend is not reached).
We have been able to know, that in the first quarter of 2014, new buyers could move some of these increases to final consumer prices.
How we look the product offering
Northern Hemisphere – The cold has delayed the arrival of the crop production in the northern hemisphere. It is too soon to evaluate how production will behave in this place of the planet. But it have already began to appear offers of products and more fluent in the estimation of milk production. We can anticipate that the U.S. will build its first plant of milk powder dedicated to the domestic and export market.
Southern Hemisphere – The focus of the production is put in Argentina and Uruguay. Both countries are having a very interesting winter start to maintain milk production. The producers, due to the weather, have made ​​interesting stocks and could correctly implement pasture and soiling of winter.
This week, the market expects the emergence of a new tend of Fonterra. As we anticipated last Friday, wait for the outcome of this new roulette.
Source: Lechería Latina – Translate: Ximena Vogel
