U.S. Dairy Exports up Marginally MOM, NFDM/SMP Exports Reach…
According to USDA, the total value of all U.S. dairy exports in Jun ’14 increased slightly MOM after two months of declines, finishing the month up 2.1% on a daily average basis. The trend of YOY increases continued, with the total value of all U.S. dairy exports up 13.6% YOY, however the YOY increase was the second smallest in 15 months.
Butter – Exports Remain Relatively Weak, Down 21.1% YOY
Jun ’14 export volumes of butterfat rebounded from May ’14 volumes but remain at reduced levels relative to volumes experienced earlier this year. On a YOY basis, butterfat exports declined 21.2%, the largest YOY decline in over a year. 2Q ’14 export sales were 36.2% less than 1Q ’14 export sales on a daily average basis. Despite the YOY decline, ’13-’14 YTD butterfat exports remain 86.5% higher than last year through the first three quarters of the production season.
U.S. butter prices have traded at a premium to Europe and New Zealand butter prices when adjusted to 80% butterfat since May, reducing export demand. Recently, the spreads have increased, with U.S. butter prices trading at a 15.1% premium to Europe and a 50.2% premium to Oceania throughout July. If this trend continues it is reasonable to expect an extended relative decline in U.S. butter exports.
Cheese – Exports Remain Strong, up 32.2% YOY
Cheese exports remain strong, with Jun ’14 export volumes increasing 32.2% YOY and 10.3% MOM on a daily average basis. Jun ’14 exports of cheese were the second largest on record, trailing only Mar ’14 export volumes. Cheese exports to South Korea, Japan and Mexico, which accounted for over half of total shipments for the fourth straight month, increased by 14.6% MOM. ’13-’14 YTD cheese exports are up 37.9% through the first three quarters of the production season.
NFDM/SMP – Exports Continue to Reach New All-Time Highs
Jun ’14 export volumes of NFDM/SMP reached a new all-time high, increasing by 26.0% YOY and 3.9% MOM on a daily average basis over the previous record export volume shipped in May ’14. Over two thirds of June shipments were destined to Southeast Asia and Mexico. NFDM/SMP exports to Mexico were particularly strong for the second straight month, increasing by 71.6% YOY.
According to the U.S. Dairy Export Council (USDEC), U.S. exports on a total milk solids basis were equivalent to 17.3% of U.S. milk solids production in Jun ’14. Imports were equivalent to 2.7% of production. See the table below for a summary of key U.S. dairy product exports as a percentage of production in Jun ’14.
Butter – Exports Remain Relatively Weak, Down 21.1% YOY
Jun ’14 export volumes of butterfat rebounded from May ’14 volumes but remain at reduced levels relative to volumes experienced earlier this year. On a YOY basis, butterfat exports declined 21.2%, the largest YOY decline in over a year. 2Q ’14 export sales were 36.2% less than 1Q ’14 export sales on a daily average basis. Despite the YOY decline, ’13-’14 YTD butterfat exports remain 86.5% higher than last year through the first three quarters of the production season.
U.S. butter prices have traded at a premium to Europe and New Zealand butter prices when adjusted to 80% butterfat since May, reducing export demand. Recently, the spreads have increased, with U.S. butter prices trading at a 15.1% premium to Europe and a 50.2% premium to Oceania throughout July. If this trend continues it is reasonable to expect an extended relative decline in U.S. butter exports.
Cheese – Exports Remain Strong, up 32.2% YOY
Cheese exports remain strong, with Jun ’14 export volumes increasing 32.2% YOY and 10.3% MOM on a daily average basis. Jun ’14 exports of cheese were the second largest on record, trailing only Mar ’14 export volumes. Cheese exports to South Korea, Japan and Mexico, which accounted for over half of total shipments for the fourth straight month, increased by 14.6% MOM. ’13-’14 YTD cheese exports are up 37.9% through the first three quarters of the production season.
NFDM/SMP – Exports Continue to Reach New All-Time Highs
Jun ’14 export volumes of NFDM/SMP reached a new all-time high, increasing by 26.0% YOY and 3.9% MOM on a daily average basis over the previous record export volume shipped in May ’14. Over two thirds of June shipments were destined to Southeast Asia and Mexico. NFDM/SMP exports to Mexico were particularly strong for the second straight month, increasing by 71.6% YOY.
According to the U.S. Dairy Export Council (USDEC), U.S. exports on a total milk solids basis were equivalent to 17.3% of U.S. milk solids production in Jun ’14. Imports were equivalent to 2.7% of production. See the table below for a summary of key U.S. dairy product exports as a percentage of production in Jun ’14.