China’s whole milk powder (WMP) imports seasonally increased in November, but volumes are still well behind year-ago levels. Last month, China imported 25,278 metric tons (MT), or 55.7 million pounds, of WMP— 70% more than October on a daily average basis but 73% less than last year. Likely the new allocation of reduced-tariff milk powder helped to boost imports as buyers took advantage of lower-cost WMP. New Zealand accounted for 98% of November’s imports. That said, New Zealand felt the brunt of China’s reduced imports with volumes falling 70% from a year ago. Regardless of last year’s strong WMP pull, China’s 2014 WMP imports have fallen behind 2012’s pace during the past four months. This statistic continues to be troublesome for near-term WMP price recovery prospects.
Skim milk powder (SMP) imports from China fell to their lowest levels of the year in November. China imported a meager 13,615 MT (or 30 million pounds), 12% less than October on a daily average basis and down 41% from a year ago. Still, China’s SMP imports are running ahead of 2012’s pace. While New Zealand, Australia, and the United States all suffered setbacks compared to a year ago, several European countries increased their share of China’s SMP imports in November. On a per-unit basis, SMP prices from most European countries were well below import values from Oceania and the United States. In fact, U.S. SMP prices were the highest among the top-five exporters at $3,830/MT ($1.74/lb.).
CME Cheddar blocks settled at $1.59/lb. down 4¢. Following suit, Cheddar barrels fell 3¢ to close at $1.535 after four loads changed hands. Spot butter and nonfat dry milk both closed unchanged on the day.