To put January’s China WMP import number into perspective, 124,900 metric tons represents 20% of China’s import volume for all of 2013.
The draw on New Zealand’s incremental milk supplies to meet China’s needs has put a strain on other products they have capacity to make, creating a shortage of fat and protein products (SMP, AMF, butter, cheese, whey proteins, casein, etc.) that global buyers must find elsewhere. Thus far, global milk supply growth has barely kept up with global demand and left other commodity stocks drastically reduced.
China’s need to feed a hungry nation and make up for its own supply shortcomings are the leading force behind the bullish tone of the global dairy market. Until China’s milk powder import volumes slow dramatically from these levels, global dairy commodity prices will remain sharply above average as the pace of milk production growth has no match for this kind of draw on available product. Read more
Dairy replacement sales results from New Holland, Pa. on Feb. 26:
Compared to last week, dairy cows sold mostly $100-$200 higher. Demand was good. Heifers traded mostly steady compared to a very light test last week. Demand was good. Prices are for Holsteins on a per head basis.
Fresh Cows: $1800-$2500
Short Bred Cows: (1-3 months): $1500-$1750
Springing Cows: (7-9 months): $1575-1825
Springing Heifers: (7-9 months): $1400-$1800
Bred Heifers: (4-6 months): $1400-$1650
Short Bred Heifers: (1-3 months): $1225-$1525
300-600 lbs: $500-$525
600-900 lbs: $700-$950
900-1200 lbs: $1185-1250