European dairy market: SMP and MPC85 stronger, WPC80 and butter weaker [Issue 321 of the Foodcom DAIRY Newsletter]

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The start of October brings a stronger tone to the market for milk powders and some liquid products, while the cheese and butter markets are showing more weakness. SMP is trading higher, and SMC has strengthened. At the same time, a good supply of cheese is entering the market, where a large portion of purchasing demand has already been secured.

In the whey and protein segment, trends are highly varied. SWP food and MPC85 are stronger, WPC80 continues to fall in price, and WPI is also weaker. Cream remains relatively stable, and whey concentrate maintains a strong price position.

Milk Powder

Whole milk powder (WMP) is being offered in Europe in the range of 3,900–3,950 EUR/MT. Prices are holding at a stronger level and are concentrated closer to the upper end of this range.

Skim milk powder (SMP) for food use is priced at 3,400–3,500 EUR/MT, while feed-grade SMP is priced slightly lower, at 3,350–3,450 EUR/MT. Both segments are strong, and current spot and Q4 indicators suggest higher prices. The difference between food-grade and feed-grade SMP is currently small.

Cheese

Gouda is being offered in Europe in the range of 3,500–3,600 EUR/MT, and Q4 indications are around 3,550–3,700 EUR/MT. Production is good, and a large portion of purchasing demand has already been secured, which is weighing slightly on prices. However, inventories are not growing fast enough to indicate a risk of a sharp correction.

Edam is priced at 3,450–3,550 EUR/MT.

Cheddar cheese is being offered in Europe in the range of 3,800–3,850 EUR/MT, while Q4 indications stand at approximately 3,700–3,750 EUR/MT. Cheddar is performing better than much of the European cheese market, and its availability is relatively more limited. However, earlier market tension has eased, as most Q4 needs have already been secured.

Mozzarella is priced at 3,400–3,450 EUR/MT in Europe, while Q4 projections range from 3,400 to 3,500 EUR/MT. The peak of summer demand is now behind us, and production remains at a good level. More cautious buying and export competition are weighing slightly on prices, so a gradual decline is more likely than a sharp correction.

Emmental intended for grating is offered in the range of 3,650–3,700 EUR/MT. Available volumes are sufficient to meet current needs, and demand is not providing a clear impetus for price increases. The market is generally stable, though with a slightly weaker price trend.

Fats

Butter in Europe is being offered in the range of 3,800–3,900 EUR/MT, while Q4 indications stand at approximately 3,700–3,850 EUR/MT. Both spot and futures prices remain weaker, and the market has not yet seen a clear rebound.

Liquids

Cream in Western Europe is being offered in the range of 4,700–4,800 EUR/MT. Indications vary across different parts of the region, but the overall price level is essentially stable.

Spot raw milk in Western Europe costs approximately 40–44 EUR/100 kg. Milk supplies remain relatively good despite the onset of the seasonal decline, so there are no signs of a clear return to tight supply conditions.

Skim milk concentrate (SMC) is being offered in Western Europe in the range of 2,950–3,050 EUR/MT. Prices have moved higher, although the spread of regional figures remains relatively wide.

Whey concentrate in Western Europe is priced at 1,550–1,600 EUR/MT. Prices remain firm, in contrast to the weaker trend for WPC80.

Whey and Proteins

Sweet whey powder (SWP) for food use is offered in Europe in the range of 2,050–2,100 EUR/MT, while feed-grade material costs 1,700–1,750 EUR/MT. The difference between the two segments remains pronounced, with food-grade SWP selling at a significant premium to feed-grade material.

WPC80 Instant is offered in Europe in the range of 21,000–21,500 EUR/MT. In Eastern Europe, prices are lower, at around 20,000 EUR/MT. Prices continue to fall, and the lower level in Eastern Europe indicates additional price pressure in that region.

WPI Instant is priced in Europe at 28,950–29,050 EUR/MT. Prices are lower, though the current level still significantly exceeds that of WPC80.

MPC85 is being offered in Europe at around 15,900 EUR/MT. Prices are firm, making MPC85 one of the stronger products in the current milk protein segment.

Food-grade whey permeate costs 1,050–1,100 EUR/MT in Europe. The market is slightly weaker, but prices remain within a relatively narrow range.

Food-grade lactose is offered in Europe in the range of 1,650–1,700 EUR/MT. Prices are slightly weaker and are currently concentrated closer to the lower end of this range.