It seems that some sectors of the dairy market have entered the vacation season a little deeper than before, i.e., the period of supply for a long absence has ended, and the vacations have begun. This is indicated, for example, by the situation in the powder market, where it was difficult to speak of an intense movement last week. Well, except, perhaps, Whey Protein Concentrate, which was one of the powders that enjoyed greater interest than in previous weeks.
Of course, that does not mean it was generally quiet. After all, the dairy market is not just a powder market (although opinions on the subject can be controversial). For cheeses, the situation is similar to the previous week, with an increase in demand for Cagliata. How has the situation of each product changed in the past week? All the important details can be found further down in this article.
Also in this issue of the newsletter: the situation of organic milk producers in Ireland, artificial intelligence and artificial intestines, litigation, frozen yogurts, disputes between countries and much more! Read now or regret later.
Continue reading to learn about this week’s market insights.
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Butter
We have seen some easing in Butter prices. However, this time it is not related to Cream prices, but to the general demand that has been met by buyers in recent weeks. The volatility of Raw Milk and Cream prices has shown that they have the potential to continue to rise (which we suspected last week at the lower limit and proved to be wrong).
Skimmed Milk Powder
Manufacturers are in a comfortable position. With the good wave of sales in recent weeks, continuity on all auction platforms, higher demand on the continent as well as the export side, the pressure on today’s sales became less. Therefore, the worrying tendency of producers to sell on a spot basis below the valorization of farmers’ payouts has eased. Certainly, the product is available, but the market is still oriented to the demand of customers, which is too low to cover the total European production available.
Gouda/Edam
Buying interest has calmed somewhat, especially the largest market, the retail sector, has finalized its purchases for the coming month. At the same time, summer vacation countries such as Spain, Italy and Greece are looking for the product, as it seems that this will be a good vacation season for these countries. Many of the producers have felt the blood in pricing and put their sales at the level of the Alps and not the Mediterranean Sea.
Full Cream Milk Powder
As in every year, the sentiment in the Mediterranean countries regarding the consumption and production of Full Cream Milk Powder is again very good. We could observe that the first week of significantly greater demand for FCMP came earlier than we expected. We think that the reason for this is that the vacation season started earlier and many people went on vacation in June, as evidenced by the autoresponders and business postcards sent to us.
Cream
Cream prices remained fairly stable last week. High temperatures in parts of Europe caused an increase in demand. Skimmed Milk Concentrate was slightly higher than last week. Spot milk was similar to before.
