The situation in the dairy sector is that everyone who can is trying to liquidate their stocks from the warehouse. Recently, there have been quite a few contracts for Butter (which is quite interesting, since it is not liquid, and yet it is apparently being liquidated as well). The hot topic last week was Cheeses, including Cagliata, which was very popular. Whey Protein Concentrate saw the biggest increase of dairy commodities, and there are many indications that the upward trend will continue in the coming weeks. As always, to learn more about the situation of each product, read on.
As for a more general description of the current market situation, it must be said that many have clearly entered the vacation season, during which they do not make many purchases. At the same time, demand from the countries where tourists are currently traveling to continues to increase. Perhaps this is a good time to grab the best deals, when some players are not active in the market… It’s certainly worth considering.
What many are currently concerned about is the long-term market forecast. Some accept the fact that the vacation season has already begun and not much will happen in the coming weeks, while others say it’s still two weeks away. Both groups are asking: what will the market look like when we return from the vacation? The answer to this question is not clear at this point, but it will certainly appear in the next issues of the newsletter. So check your email inbox regularly!
Continue reading to learn about this week’s market insights.
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Butter
Last week showed a different sentiment regarding the sales of Butter without much action happening on the market. The manufacturers came to the conclusion that the only way to monetize the product is to accept the lower prices coming from the consumers. A lot of planning has been made recently to close all running affairs and attend the scheduled vacation, announced earlier by the sellers.
Skimmed Milk Powder
Last week also showed a sign of easing from the EU sector mainly caused by Arla selling the product on the GDT platform and the prices closing around the area of 2.30 EUR/KG FAS. It’s hard to predict the continuity of the export demand and how will it change further. China, which consumed the Q2 production, is not willing to sell all the remaining volumes allocated in the European Union, yet.
Gouda/Edam
The prices of the Cheese commodity remain strong compared to the other products mentioned in our newsletter. Manufacturers are not feeling a lot of pressure to come down from the quoted prices, which allows them to keep the products’ value. Even though Dutch-type Cheeses are in the spotlight, we observe a building interest in Swiss-type Cheeses like Emmental, for which we see continuous demand.
Full Cream Milk Powder
Last week we observed the Mediterranean region actively purchasing. This trend has also continued this week. We have the impression that the last remaining inquiries and demand are for the pre-vacation purchases that stabilize the offers in terms of price. The inquiries also set visible signs of demand in the current market. A difference started showing up when we compare the CEE sector and Western Europe. It seems the further west and south you go, the cheaper the product.
Cream
Last week the prices for Cream slightly dropped (about 100-150 EUR/MT down) because of a weaker demand around Europe. Nevertheless, prices for raw milk were stable. The situation was similar for SMC. We will see what the summer will look like…
