Global dairy and meat demand remains sluggish

Published 2024년 4월 25일

Tridge summary

Commodity markets have seen a decrease in prices through March 2024 due to weak global demand, despite a weak global supply backdrop. Dairy prices have remained range-bound, with only butter bucking the trend. New Zealand and Australia have seen increases in milk production, while the US and EU have seen decreases. Beef farmgate prices continue to perform well, driven by demand from the US, with New Zealand beef exports to the US seeing a 33% year-on-year growth. Sheepmeat markets have remained steady, with positive signs for markets outside of China. Global trade discussions are focusing on expectations regarding Chinese exports of nitrogen and phosphorus fertilisers, with a favourable outlook for end users. However, the lack of clarity regarding government-defined quotas for nitrogen fertilisers could lead to the accumulation of surplus stocks and a bearish market.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Commodity markets have softened through March 2024 against a backdrop of slightly weaker global fundamentals. The dairy complex had staged a recent rally since the bottom of the market in Q3 2023. Nonetheless, all dairy products except butter were softer in March 2024 and remain at or below five-year averages. Rabobank expects dairy commodity prices to remain range-bound at or near current levels in the near term. Sluggish demand remains a key driver for dairy commodity prices. Better times lie ahead for dairy demand in many economies. However, the speed of recovery will be critical to how new season's milk prices will shape up. Dairy demand is generally still sluggish and if this remains the case for longer than expected, global markets will be susceptible to softness in commodity prices - despite a weak global supply backdrop. Local milk production in Oceania remains in positive territory. New Zealand milk production was 2.8% higher in February (leap year adjusted) on a ...

Source: Ruralnewsgroup