Summary of the week 17 (dairy)
SMP remains high. There are at least two reasons for this. Certainly, greater demand from European end-users and the unstopping demand from outside of the EU. The stocks are low.
The situation is similar with FCMP. The number of inquiries does not decrease. Even though the price seems to be high, it’s still a bargain compared to Oceania. Whey and whey derivatives are still expensive. The price is the highest since the beginning of the year. Very high demand from outside of the EU. Everyone wonders if and when this demand will slow down. WPC notes another month of increases. Buyers often try to catch prices from previous weeks, but unsuccessfully. Most of the producers already sold out their stocks for June and July a long time ago.
Cheese production in France and Germany is lower than expected due to the cool weather. Hopefully warming of the weather that seems to be on a horizon as well as lifting the restrictions will heat up the market. Some movements in mozzarella and cagliata can be noticed, but it’s not as much as it usually was this time of the year. Italy brings hope. Due to the gradual loosening of restrictions, the market is moving and demand is increasing. However, there is a price pressure on cheese blocks and the prices went a bit down.
Seasonal increase in packaged butter is just around the corner. It will influence the whole butter market. Anyway market players are not eager to make decisions as the pandemic future is unpredictable. Even though, many block butter buyers are actively looking for good offers. German retailer is expecting prices at about 3.95 EUR/kg. Today’s GDT will probably show the direction.
The seasonal milk intake peak is expected to occur in a few weeks. Some believe that the numbers would be higher, than last year, but the weather situation might prove otherwise. SMC lowered slightly. Nevertheless, by the end of week, cream strengthened a bit. We see more inquires incoming.